Biotech Venture Funding Rebounded in 2013 After Strong Fourth Quarter

NVCAEarlier this month, the National Venture Capital Association (NVCA), a trade association representing the U.S. venture capital industry, released the results of its MoneyTree Report on venture funding for 2013.  The report, which is prepared by NVCA and PriceWaterhouseCoopers LLP using data from Thomson Reuters, indicates that venture capitalists invested $29.4 billion in 3,995 deals in 2013, which constituted a 7% increase in dollars and a 4% increase in deals over the prior year (see chart below, which shows total venture funding from 2004 to 2013; data from MoneyTree Reports; click on chart to expand).


Last year, the software sector took the top spot in funding -- with $11.0 billion invested in 1,523 deals -- which was the highest level of funding for that sector since 2000.  The software sector also accounted for 37% of total venture investment in 2013, which constituted the highest percentage since the first MoneyTree Report was issued in 1995.  Biotechnology funding in 2013 increased to $4.5 billion, which was an 8.2% increase over biotechnology funding in 2012 (see chart below, which shows venture funding for the biotech (blue), medical devices (red), and software (green) sectors from 2004 to 2013; data from MoneyTree Reports; click on chart to expand).

Overall, ten of the seventeen sectors tracked by the NVCA saw increases in dollars invested in 2013.

The report also noted that in the fourth quarter of 2013, $8.4 billion was invested into 1,077 deals (see chart below, which shows venture funding by quarter from 2010 to 2013; data from MoneyTree Reports; click on chart to expand).


In the fourth quarter of 2013, biotechnology venture funding was up 42.6% over the third quarter with $1.3 billion being invested.  Biotechnology funding had dropped 34.4% in the third quarter, with only $927 million being invested (see chart below, which shows venture funding by quarter for the biotech (blue), medical devices (red), and software (green) sectors from 2010 to 2013; data from MoneyTree Reports; click on chart to expand).

For additional information regarding this and other related topics, please see:

• "Biotech Venture Funding Sees Second Quarter Rebound," July 22, 2013
• "Biotech Venture Funding Down 33% in First Quarter," April 30, 2013
• "Annual Venture Funding Drops for First Time in Three Years," February 4, 2013
• "Biotech Venture Funding Up 64% in Third Quarter," October 29, 2012
• "Venture Funding in Life Sciences Sector Drops 9% in Second Quarter," July 22, 2012
• "Biotech Venture Funding Drops 43% in First Quarter," May 3, 2012
• "Venture Funding Increased 22% in 2011," February 2, 2012
• "Life Sciences Venture Funding Drops in Third Quarter," October 27, 2011
• "Life Sciences Venture Funding up 37% in Second Quarter," August 1, 2011
• "VentureSource Reports 35% Increase in 1Q Venture Funding," April 26, 2011
• "NVCA Reports Modest Gains in First Quarter Venture Funding," April 19, 2011?
• "NVCA Reports 31% Drop in Venture Funding for Third Quarter," October 17, 2010?
• "NVCA Reports 34% Increase in Venture Funding for Second Quarter," July 22, 2010?
• "NVCA Report Shows First Quarter Drop in Venture Funding," April 20, 2010?
• "Biotech/Pharma Financing Improving, R&D Spending Up," August 31, 2009
• "NVCA Study Shows Increase in Third Quarter Venture Funding," October 23, 2009?
• "First Quarter Venture Capital Funding at 12-Year Low," April 23, 2009?
• "NVCA Study Shows Decline in 2008 Investment; BIO Study Predicts Biotech Rebound in 2009," February 16, 2009


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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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