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BIO’s Dave Thomas Talks VC Funding with Daniel Levine

March 13, 2015
Last week, BIO Industry Analysis’s Dave Thomas spoke with Daniel Levine for his weekly podcast, The Bio Report. Dave discussed BIO's Venture Funding of Therapeutic Innovation Report, of which he is the lead author. The report analyzes data from four venture capital databases – Thomson Reuters, BioCentury, Elsevier, and Evaluate Pharm – to investigate investor trends, examine investment in specific therapeutic areas and indications, and identify disease areas that might be struggling for early-stage venture equity financing.

Listen to the podcast below:

Key findings of the report included:

  • Seventy-eight percent of U.S. venture investment for therapeutics went toward novel drug R&D, suggesting innovation is a core priority for venture investors

  • Total venture funding of drug R&D dropped 21 percent, from $21.5 billion to $16.7 billion, comparing five-year periods before and after the recent financial crisis (2004-2008 vs. 2009-2013)

  • Disease areas affecting large populations – Diabetes, Psychiatry, Gastrointestinal, Respiratory, Cardiovascular – have seen a decline in novel drug R&D venture funding

  • Rare disease funding has seen a large increase over the past decade in terms of both dollars raised and number of companies funded

  • There are fewer first-time Series A financings in recent years, down 30 percent from a peak in 2006, but higher dollar amounts for novel drug R&D venture funding