Venture-Backed Healthcare deals rise to $2.7B in Q2 – 2014

Healthcare VC deal volume trendsAccording to a new report by CB Insights, VC backed 974 deals in the second quarter this year. Of those, venture-backed healthcare deals rose from $1.47 billion in Q1 to $2.73 billion to close out the second quarter this year.

The largest healthcare deals were from growth stage organizations, of which the majority were biotechnology companies. Both Intarcia Therapeutics and Alignment Healthcare raised a total of $200M and $125M, respectively.

IPO’s accounted for nearly half of all these deals, as per usual (this is the fifth consecutive quarter this trend has been at the top of the list). The largest IPO was filed by Adeptus Healthmedical-devices-CB-insights-Q2-588x324

California and Massachusetts accounted for more than half of all healthcare deal activity in QII (40% and 16% respectively). Most interestingly, however, was that most activity involving venture-backed healthcare deals were in the medical device industry. This is a welcome boost, as most recent trends for the medical device/medical tech industries were in decline as recently as last year. This might be attributed to a surge in digital health: An upward trend in funding over the last two quarters may very well have contributed to the boost in Q2.

 Additional Sources:

CB Insights: “Healthcare IPOs Boom in Q1 But VC Funding Falls From 2013 High.”

CB Insights: “Healthcare Corporate VCs Participate in Deals Total $2.2B Over Last Four Quarters.”