In VC market, life sciences dominate

In the first quarter of this year, venture capital investment dipped 5 percent to $7.1B, signaling that the current economic slump could have an impact on venture financing. However, there was still a dose of good news for biotech, as the industry outpaced the software sector, raising $1.27 billion with 126 deals (software, with 234 deal, had more transactions overall). The Life Sciences sector (both biotech and medical devices together) took the lead in VC investing, raising with $2.3 billion in Q1--that's roughly a third of all VC dollars and a quarter of all deals.

"The continued interest in the life sciences and clean technology industries, as well as the traditional IT sectors, reflects the long-term investment horizon..." said Mark Heesen, president of the NVCA. "We do not expect to see significant declines in investment levels in the coming year. However, the dollars going to later stage investments could increase if the IPO window remains closed for an extended period of time and venture capitalists have to sustain companies longer than expected."

- see the release
- read this AP report

Related Articles:
Top 20 VC deals of 2007
Do VC groups love the Web more than biotech?
Rocky market puts freeze on biotech deal-making
Billion-dollar baby: Biotech still on a roll with VC funds

Suggested Articles

All 12 members of an FDA advisory committee voted to recommend the approval of teprotumumab for a rare, autoimmune eye disease.

Early data out of former Fierce 15 winner Gritstone Oncology have been heralded as a big win for the early-stage biotech by analysts.

Biogen will drop work on gosuranemab in progressive supranuclear palsy but continue on in Alzheimer's.