Data for the this analysis was compiled using the DealForma database; specifically the companies and venture funding sections. We used company location data tagged with the three major U.S. biotech hubs along with primary therapeutic and technology focus areas. All data are based on publicly disclosed figures. We invite you to answer interesting questions using our data and carefully curated profiles on deals, pipelines, companies, funding, and business executives by visiting dealforma.com to schedule your personalized demo.
Location, Location, Location: Real estate costs a lot in the three largest biotech hubs, but it’s a charm for raising capital. Biotech companies raised $37.4 billion globally in 1027 rounds of venture financing over the past four years from 2015 through the third quarter of 2018 and companies located in the San Francisco Bay area, greater Boston area, and San Diego County accounted for 55 percent of the total raised and 46 percent of the financing activity. The data comes from DealForma’s extensive database and research capabilities.
These charts are available for download below.
Analysis of this data shows that the San Francisco Bay Area has maintained a slight edge over the burgeoning Boston/Cambridge scene in terms of dollars raised and rounds completed by private biotech companies. And venture investment into San Diego-based companies has boomed in 2018 to $938 million raised in 14 rounds, compared to just $100 million raised in five rounds in 2017.
Cancer continues to be the top therapeutic area of interest for VC investment especially for the SF Bay Area, garnering 38 percent of dollars invested. But in the Boston area, technology platform companies garnered slightly more money, $2.6 billion versus $2.2 billion, in three fewer investment rounds. And in San Diego, investment in technology platform companies outpaced investment in cancer therapeutics over the past four years.
Want data for your analysis? Want us to do it? Subscribers get both.
Schedule your demo of the DealForma database to see how we help you get better reports done faster.
Specifically for Biotech, Pharma, Device, and Diagnostics
Technologies for the development of small molecule therapeutics garnered top dollars across all three regions with immunotherapies, cell and gene therapies, and diagnostics investment trailing close behind. Indeed advancement in these technologies is at an all-time high as the number of companies that raise $100 million or more per round continues to grow. Among the global $100 million plus group, biotech companies raised a total of $10.3 billion over the past four years in 61 investment rounds, averaging $169 million per round. Biotechs in the three big hubs accounted about half of that, or $5.8 billion of that in 33 rounds, averaging $176 per round.
Historically, investors usually waited until a company had surpassed an inflection point before placing a lot of dollars into it. Recently, however, an increasing number of Series A and Series B rounds are $100 million plus. During the first three quarters of 2018, $ 1 billion was invested in Series A and Series B rounds in biotechs based in the three major hubs in six rounds, out of $2.2 billion invested globally in early stage companies in 13 rounds.
This is the result of a number of factors, including robust fundraising by VCs who must now invest those funds, excitement about new technologies and advances in biological and technological understanding, a responsive regulatory environment, and strong capital markets with an open IPO window and healthcare savvy investors.
Next week, I’ll talk about some of the top VCs in biotech and companies they are investing in.
Marie Daghlian is a freelance writer and editor who reports on the business of biotechnology and healthcare technologies. She also covers the industry for Big3Bio, a daily newsletter focused on the three major biotech centers in the United States.
More from the DealForma Blog
Biotech reverse mergers have been an alternate way for private biotechnology companies to gain a public listing. Here’s a quick table of over 10 years of deals.
2019 biopharma dealmaking started with a bang as the first quarter saw global biotech and pharma partnering deal values hit $38 billion in 282 deals.
Celgene was among the top investors in cancer biotech companies. This is a look at the top 10 since 2010.
Life Sciences M&A started with a bang in 2019 with one of the biggest deals to date – Bristol-Myers Squibb will acquire Celgene for $74 billion. We mined DealForma’s extensive database for historical M&A trends in biopharma, medical devices, and diagnostics to get an idea of what might lie ahead in 2019.
Innovative biotech companies are in a stronger position today as far as the value of their assets. We look at oncology deal payments by stage at signing.
Global biotechnology venture investment topped $11.8 billion in 258 financing rounds in the first 10 months of 2018. Who are the top biotech venture investors, where are they investing their money, and what are they investing in?
Pharma deal upfront cash payments made for development and commercialization with biotech, device, diagnostics, and technology platform companies.
You met at BIO. Now it's Deal Time.
With thousands of company profiles and a decade of deals specifically in biotech and pharma, you'll take the guesswork out of deal comps. Schedule your customized demo to see how DealForma helps you win that term sheet with better data.
DealForma is the biopharma database providing you comprehensive information and analyst support hours to help you be more confident using quality data in your business development research.
Analysis / Blog