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2019 Silicon Valley Bank Annual Report Jan 1, 2019

Silicon Valley Bank Annual Report in 2019 provides its analysis on biopharma venture capital fundraising, biopharma exits, and outlook in 2019.


2018 Highlights: Investments

  • US healthcare venture fundraising reached a record $9.6B, continuing a four-year upward trend
  • Venture investments increased 50 percent over 2017, setting a record.
  • Biopharma dollar volume doubled that of 2017
  • Biopharma Series A dollars increased 35 percent, led by oncology and platform companies, which accounted for more than half of all deals and dollars
  • With nearly twice the number of 2017 deals, Top 15 Crossover Investors restocked biopharma IPO pipelines by funding 60 private companies


2018 Highlights: Exits

  • 2018 was a banner year for biopharma IPO and M&A exits, hitting a record total deal value of $49B
  • Biopharma IPOs reached a five-year high in pre-money valuations and dollars raised, and private M&A posted a 5x median
  • Upfront multiple and a median time to exit of just over three years
  • A record 18 $1B+ venture-backed biopharma IPOs and M&A deals were completed in 2018


2019 Outlook

  • We anticipate total US investment into life science to continue at a healthy pace, reaching about $8B, with established funds likely to be joined by new spinout funds anchored by established investors. In addition, tech firms may raise life science–only sister funds
  • Top 15 Crossover investment in venture-backed companies could soften by 25 percent or more, leading to biopharma investments decreasing to more closely match 2017 numbers
  • The biotech IPO pipeline is strong, but market uncertainty could drag IPOs down to 30 to 35 deals and moderately reduce pre-money valuations and dollars raised. As a result, we expect an increase in private biopharma M&As


You can find more information at the following link:
Trends in Healthcare Investments and Exits 2019, SVB