Current trends in healthcare investments and exits. Silicon Valley Bank released it's 2019 Mid-Year Report with extensive information about current trends in healthcare investments and exits due to IPO boom fueling investments and fundraising.
2019 looks to be the second-largest investment year ever, currently trailing 2018 pace by 10%. Device is set to eclipse 2018 numbers, as successful IPOs have spurred increased early stage investing and crossover interest in large pre-IPO mezzanine rounds. Biopharma is slightly down, but an open IPO window has led to lofty valuations and continued large Series A and B rounds. Dx/Tools investment is down, as exits lag behind the other two sectors.
With California and Massachusetts leading US investment in Biopharma, 2019 is looking to be another strong year for Venture Fundraising following a record year in 2018.
Biopharma Series A and mezzanine pre-IPO deal sizes continue to grow as these companies eye the attractive IPO market. We saw larger crossover and commercialization rounds in the device sector, led in part by a string of successful IPOs over the past two years. There was slightly more angel/seed round activity (deals under $5M) in 1H 2019 versus 2018, likely the result of increased seed investing programs by traditional venture funds.