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VC Financing of Therapeutic R&D

July 26, 2010
We took a look at the BioCentury database (BCIQ) to analyze trends in private financing of therapeutic biotechs (drug and molecular diagnostics). The results are in the three charts below and the conclusions are as follows:

  • The NUMBER OF deals is essentially the same from 2007-2010, assuming the second half of 2010 is about double the current number.

  • However, the AVERAGE financing is down from 07/08 for Series B, and later

  • By Phase of development, the AVERAGE financing is down from 07/08 for preclinical, Phase 1, and Phase 2. Phase 3 is holding steady.

  • The total amount raised is down from 07/08 vs 09, and we estimate 2010 could see the lowest amount raised since 2007

(the number of financings is the number at the lower portion of each bar)

The data we used was from U.S. companies only.  We screened out service/tools/device companies and private biotech companies with products already on the market.  The phase of development refers to a company's most advanced treatment at the time the financing was reported.