TLDR:
- 89% of US VC funds at or above $25M hit their fundraising targets in the first half of 2024
- 55 biopharma companies secured deals of $100M or more
In the first half of 2024, the healthcare sector has seen a steady rise in VC investment and fundraising, as highlighted in the 14th edition of the Mid-Year Healthcare Investments and Exits Report released by Silicon Valley Bank (SVB). The report indicates that the biopharma sector, in particular, could be on track for a record-setting year, with a high number of companies securing substantial deals. Despite ongoing scrutiny of valuations, the healthcare sector is showing resilience, with more than 1 in 4 US healthcare companies reporting flat or down rounds for venture capital deals of at least $15M.
The report provides detailed analysis for various sectors within the healthcare industry, including biopharma, healthtech, medical device, and diagnostics/tools. Key findings include:
- Biopharma: Series A investment in biopharma is on track for a strong year, with a significant increase in investments in rare disease companies.
- Healthtech: The sector saw the second strongest half for Series A investments since 2021, but some companies may have fallen into a valuation trap.
- Medical Device: Fundraising for pivotal studies and regulatory approval is trending, with companies gaining capital through performance and acquisitions.
- Dx/Tools: While capital raising has been challenging, investors are seeking innovative solutions that define new categories.
The report suggests that 2024 could finish on an upswing, depending on factors such as mega deals, AI utilization, and market performance. SVB continues to provide market insights in various sectors and remains a leader in offering comprehensive reports on the innovation economy.
