Yesterday, David Thomas, BIO’s VP of Industry Analysis, reviewed some new data on venture capital investment in emerging therapeutics. The takeaway: biotech is booming—and the impact of COVID-19 on investment might surprise you.
At $18.2 billion YTD, emerging therapeutic venture capital is on track for a record year. Compare that to the year-end totals of $18.3 billion in 2018 (the peak) and $17.7 billion in 2019.
The bulk of the money (66% in 2019) goes to U.S. companies—but the percentage going to non-U.S. companies is growing, reaching around 35% so far this year.
Trends are similar on the fundraising side, said Dennis He, Relationship Manager at Silicon Valley Bank. Roughly $10.5 billion in new funds have been raised in the first half of 2020, on par with full-year 2019, and funds are about 30% larger.
Comparing the first three quarters of 2019 vs. 2020, more companies are being funded this year—229 in 2020, compared to 205 in 2019.
And $3 billion more has been spent—$12.1 billion in 2020, compared to $8.6 billion in 2019.