Venture-capital investment in life sciences declines in 2013

Venture-capital funding for the life sciences sector, which includes biotechnology and medical devices, declined by 1 percent in dollars invested and 3 percent in number of deals compared to 2012, according to a report from PricewaterhouseCoopers LLP and the National Venture Capital Association.

VCs invested $6.6 billion into 778 Life Sciences deals in 2013, compared to $6.7 billion in 800 deals in 2012, according to the MoneyTree Report based on data provided by Thomson Reuters.

On a quarterly basis, life sciences investments rose 19 percent to $1.8 billion in the fourth quarter of 2013, compared to $1.5 billion during the prior quarter.

The number of life sciences deals rose 21 percent from 188 during the third quarter to 228 during the fourth quarter. Despite the quarterly uptick, life sciences share of total venture funding declined from 25 percent in 2012 to 23 percent in 2013.

Biotechnology companies raised $4.5 billion in 470 deals during 2013, placing it as the second-largest investment sector behind software, which drew $10.9 billion in 1,523 deals during the year.

In the last quarter of 2013, VCs invested $460 million into 94 medical device deals, a 19 percent decrease in dollars, but a 42 percent increase in deals compared to the previous quarter.

The medical device industry declined overall for the full year, suffering a 17 percent decrease in dollars invested and a 4 percent decline in the number of deals compared with 2012.


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