Silicone Valley Bank: Trends in Healthcare Investments and Exits 201804-Nov-2018
A recent report by SVB highlights Civilization Ventures:
Fundraising is on pace to match the 2017 total of $9.1B – counter to our early 2018 prediction that the annual total would decline. A confluence of events is driving investment and fundraising to new levels. Rapid technological advances, leading to clinical breakthroughs, are benefiting patients and investors alike. In this environment, quick exits are underpinning an explosion of activity, particularly in biopharma, attracting new pools of capital and giant investments by traditional and nontraditional investors, including tech investors.
With the entry of artificial intelligence (AI) and machine learning (ML), these tech investors see huge opportunities in drug development and the tools required to help identify cures for a range of diseases. The biopharma IPO window is rewarding investors with quick valuation step-ups (many companies had IPOs within two to three years of Series A).
This path to liquidity is translating into renewed excitement by limited partners who are eager to keep the investment cycle going by supporting larger venture fundraises at a faster pace.