Biotech is eating healthcare funding

Venture equity invested in healthcare-related companies has increased more than 12 percent since 2015, and the share of that cash going to biotech-related companies has seen the biggest increase, rising 28 percent.

Year-to-date through mid-September, there have been 622 venture deals with 560 U.S.-based companies in the medical, health and life sciences sectors, having raised $14.4 billion in investment, according to preliminary data from Thomson Reuters.

That compares with $16.3 billion raised by the sector in all of 2017, and it’s 12.2 percent more than the $12.9 billion raised across 1,231 deals by 914 companies in 2015.

Meanwhile, more equity is going to biotech companies.

In 2015, $8.2 billion, or 63.5 percent of the total investment dollars raised that year, went to biotech companies across 632 deals. Year-to-date in 2018, $10.5 billion, or 72.5 percent of the total raised, has gone to biotech companies, while the number of deals has dropped to 335.

And so far this year, total funding to biotech companies has nearly matched the 2017 total, with $10.5 billion invested compared with $10.9 billion invested in all of last year. The four largest healthcare-related deals in 2018 to date have all been with human biotech companies.

Below are the 25 biggest venture deals with U.S.-based companies in the medical, health and life sciences sectors in 2018 to date.

Top 25 U.S. based health deals