Venture investing in the biotech sector hit the $1.1 billion mark in the first quarter of the year--a surprisingly strong showing for what has generally been a quiet season in the U.S. industry.
San Francisco biotech bankroller Foresite Capital has closed a $300 million second fund, setting out to invest in drugmakers with a clear path to market amid some renewed optimism in life sciences venture capital.
Anyone looking to start a biotech company should pay close attention to this list. Venture groups, entrepreneurs and increasingly Big Pharma have been concentrating their money and their attention in a few key places, only occasionally straying from the beaten path when funding a high-risk drug development effort.
With IPOs still booming, follow-on financings sizzling and venture capital rolling in at a steady pace, the biotech industry has been stocking up on billions of dollars in cash.
As biotech venture funding plods along at a middling pace, A-list investor OrbiMed has bagged $735 million for its 5th fund, cash earmarked for life sciences companies across all stages of development.
Over the last few months, Carlos Paya has been filling out his management team at Seattle-based Immune Design. And today the biotech CEO detailed an injection of $32.5 million in venture cash--with the near-term prospect of adding $16.5 million more--to finance the biotech's efforts to nail proof-of-concept data on its two top cancer vaccines.
California VC Versant Ventures is putting together another $200 million fund, according to a regulatory filing, building up its chest as biotech investments maintain their sluggish pace.
First-time venture deals in biotech cratered to a 17-year low in the first three quarters of 2013, but that doesn't mean startups are starving. As The Burrill Report points out, despite the VC drought, about a quarter of all equity deals in that period went into Series A rounds, meaning early-stage companies are getting creative and nailing down alternative funding sources.
Biotech companies in the U.S. drew a weak $852 million in venture support over the past quarter, a distinct downturn over a burst of new financing rounds in the second quarter. That dollar figure represented a 39% plunge from the second quarter, though the smaller bankroll was divided among 123 deals, with a 10% jump in the number of companies involved.
Stockholm-based Pharmalink AB is banking $15 million from a C round designed to get one drug through a Phase IIb study and position another therapy for a pivotal trial of its own.