Published by: VentureDeal

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Summary

Life Science companies secured $2.27 billion in venture capital financing during the second quarter of 2008, representing a 3% decrease versus the first quarter. The funding was allocated between 208 companies, a 6% increase over the previous quarter in the aggregate.

Medical Devices received the most amount of funding by a wide margin as in Q1 08, raising $966 million among 92 companies. Pharma came in second with $696 million, representing a 14% decrease versus the previous quarter. Biotechnology startups received $605 million between 64 companies.

Funding Activity

Biotechnology

Biotechnology funding stabilized during the quarter at roughly the same level as Q1 08. The largest venture financing during the quarter was Kythera Biopharmaceuticals' $40 million third round. The company said it would use the proceeds to complete phase II trials for its lead product ATX-101. It has three ongoing studies to evaluate its safety and effectiveness for the reduction of submental fat and subcutaneous lipomas.

Other notable activity in the space included the following large series A financing events: