Reports

Q1 2016 VentureDeal Quarterly Venture Capital Report

Biotechnology - Medical Devices - Pharmaceuticals

Life Science companies secured $3.6 billion in venture capital financing during Q1 2016, representing an increase of 6% versus Q3 2015. The funding was allocated between 225 companies, a 6% increase.

 

Biotechnology

 

Biotechnology funding moved up sharply from Q3 2015, increasing by 31% during the quarter. The number of companies funded also increased, by 24% versus the previous recorded period.

Cancer specialist Grail secured $100 million in capital to continue development of its pre-cancer blood screening technologies. Investors in the round included Bill Gates, ARCH Venture Partners, Sutter Hill Ventures, Bezos Expeditions and corporate investor Illumina.

Redwood City, California-based Pliant Therapeutics landed $45 million in its Series A round from Third Rock Ventures and other undisclosed investors. Pliant said that its “product engine has the potential to address the needs of many patients by targeting fibrosis in a variety of organs and conditions.”

 

Biotechnology Funding History - to 1st Quarter 2016

 

Pharmaceutical

 

Pharmaceutical fundings decreased to $753 million, representing an 11% decrease in amounts funded but a 24% increase in the number of companies funded vs. Q3 2015.

La Jolla, California-based Orexigen Therapeutics secured the largest financing round of the quarter, receiving $165 million in venture equity and debt capital from undisclosed investors, according to an SEC regulatory filing. The company says that it is making progress in developing a novel, two-drug approach to achieve and sustain weight loss. Proceeds purposes from the financing were not disclosed.

Deciphera Pharmaceuticals of Waltham, Massachusetts, received $15 million in its Series B equity funding round from venture capital investor SV Life Sciences. Deciphera will use the funding proceeds to continue developing its lead tumor-targeting clinical programs, including its Altiratinib and DCC-2618 programs.

 

Pharmaceutical Funding History - to 1st Quarter 2016

 

 

Medical Devices

 

Venture capital funding for Medical Device companies dropped by 22%, resulting in $860 million in aggregate funding during the quarter. The number of companies funded dropped nominally from the previous period.

The largest funding event during the quarter was $75 million in Series C investment from a syndicate of private equity, corporate and venture capital investors for Carlsbad, California-based Acutus Medical. The company said it would use the proceeds to “continue to develop the entire suite of AcQMap products necessary to perform any catheter-based procedure” along with its other clinical programs.

 

Medical Devices Funding History - to 1st Quarter 2016

 

 

Table 1

Venture Capital Funding - 1st Quarter 2016

 

Industry

Total

Disclosed

Funding

% Change

Vs.

Prior Quarter

Number of

Companies Funded

% Change

Vs.

Prior Quarter

Biotechnology

$1.96 billion

+ 31 %

107

+ 24 %

Pharmaceuticals

$753 million

- 11 %

31

- 24 %

Medical Devices

$860 million

- 22 %

87

- 1%

Total

$3.6 billion

+ 6 %

225

+ 6 %

 

 

This material has been prepared and issued by VentureDeal.  The information contained herein is based on current information that VentureDeal considers reliable, but we make no representation that it is accurate in the future or complete, and it should not be relied upon as such.  It is provided with the understanding that VentureDeal is not acting in a fiduciary capacity.

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