Silicon Valley bank sees sharp increase in healthcare startup investments coming for next two years

Funding for emerging companies is on the rise across all sectors so far in 2016. 
By Jeff Lagasse
02:39 PM

While $7.5 billion went into healthcare startups venture capital investments as of 2010, by 2015 that total spiked to nearly $10.5 billion, according to the Silicon Valley Bank Healthcare Investments and Exits Mid-Year Report.

What’s more, the study's authors see that strong investment continuing over at least the next two years.

Funding for early-stage startups is up in all sectors so far this year. Biopharma alone is on pace for over 100 Series A deals, with $2 billion in invested capital — up 30 percent over 2015.

If investment velocity continues, that would be a record high.

Much of this activity has focused on pre-clinical technologies for oncology, neurology and orphan/rare disease companies.

Oncology, in fact, is leading the charge in new biopharma investments. From 2015 through the first half of this year, there have been 62 deals representing around $2.4 billion. 

Device deals have also already eclipsed 2015 totals, with significant investment activity in neurology, cardiovascular and surgical companies. 

Twitter: @JELagasse


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