Venture funding for all industries has fallen by more than half since 1999, dropping from $54.1 bln then to $26.5 bln in 2006, according to the National Venture Capital Association. Funding for Internet startups is running at roughly $1 bln a quarter in 2007, down from a high of $14.27 bln in Q1 2000.Int
Acquisitions of US venture-backed companies in Q2 2007 declined noticeably, with 81 transactions totaling $7.6 bln, compared to 98 transactions totaling $9.6 bln in Q1 2007. The median acquisition amount was $55.8 mln, which was also a noticeable decline from Q1 2007 but above the average for 2006, Fenwick & West survey says.
IPOs of venture-backed companies increased to 22 companies raising $2.7 bln in Q2 2007, compared to 13 IPOs raising $1.2 bln in Q1 2007. The amount raised in venture-backed IPOs in Q2 2007 was the highest amount raised since Q3 2000 and the $3.9 bln raised in venture-backed IPOs in Q1 2007 and Q2 2007 surpassed the total amount raised through such activity in all of 2006, Fenwick & West survey says.
US venture investment in health care continued to be strong with $2.4 bln of total investment, of which $1 bln went to medical device companies, the highest total on record for that segment of the health care industry. IT investment also continued to be strong with $4.1 bln invested, with information service companies (which includes Web 2.0 companies) receiving close to $1 bln, a substantial increase for that industry segment, Fenwick & West survey says.
The amount invested by venture capitalists in the US in Q2 2007 was approximately $7.4 bln in 717 transactions, compared to $7 bln raised in 584 transactions in Q1 2007. The amount invested this Q was the highest amount of venture investment in a single quarter since Q4 2001, Fenwick & West survey says.
Spending on the development of new energy and environmental technologies is projected to grow by 14% in 2007 to exceed $55 bln worldwide, with corporate and government spending up 10% and venture capital on track to double.
Healthcare Corporate Finance News published a list of top venture companies investing into healthcare sector.
Venture investing in healthcare sector
|Venture capital firm||Deals|
|Sofinnova Ventures/Sofinnova Partners||6|
|ARCH Venture Partners||5|
|New Enterprise Associates||5|
|Novartis BioVentures/Novartis Venture||5|
|Three Arch Partners||5|
|Advent Venture Partners||4|
|Asset Management Company||4|
|Bay City Capital||4|
|Frazier Healthcare Ventures||4|
|Source: Healthcare Corporate|
Healthcare Corporate Finance News published a list of venture investments into healthcare companies.
|Healthcare venture investments in Q1 2007|
|Health Care Services||9||$197.1|
|Source: Healthcare Corporate|
Venture capital investment in US health care companies was up solidly in 2006 compared to 2005 ($8.2 bln vs. $7.4 bln). Health care’s share of total US venture investment increased slightly from 31% in 2005 to 32% in 2006. US medical device/equipment companies raised approximately $2.6 bln in 2006, the best year ever for that sector.
Israeli venture capital funds raised $473 mln in 2006, a 67% decline from the $1.46 bln achieved in 2005.