8 huge trends in venture capital money for healthcare start-ups

Spinal Tech

How much venture capital money is out there for healthcare start-ups?

Apparently, quite a bit.

According to a recent article in the Wall Street Journal, medical start-ups in the United States raised around $3.9 billion in venture capital during the first quarter of this year. Here are eight key trends from the report:

 

1. There is raising investor interest in biotechnology, digital health and healthcare services.

 

2. There is also a strong market for initial public offerings.

 

3. There is a quick steepening of the valuation curve, according to New LeafVenture Partners Managing Director Philippe Chambon.

 

4. Around $2.14 billion was sunk into biotechnology companies, up 72 percent from last year.

 

5. Drug manufacturers are investing billions in acquisitions, including Johnson & Johnson acquiring venture-backed Alios BioPharma for $1.75 billion last November.

 

6. Healthcare information technology investment totaled $429 million, up 56 percent over the same period last year.

 

7. Healthcare services financing received around $703 million in the first quarter of 2015.

 

8. The funding continues even as there is a declining interest in medical devices.

 

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