The latest edition of SVB’s Healthcare Investments and Exits report provides information on VC fundraising, investments and M&A and IPO trends – along with subsector analysis and video commentary for each, HIT Consultant reports.
Healthcare trends indicate US healthcare VC investment was healthy in 2022 despite an economic downturn. There’s plenty of dry powder to deploy; however, investments and exits are slowing due to the volatile market.
Among the key trends and insights:
Venture capital (VC) fundraising was unprecedented in H1 2022. Despite a slowdown in H2, funds closed out the year with nearly $22B to invest into healthcare companies, second only to the record $28B raised in 2021. With over $50B fundraised in the past two years, venture healthcare has the largest war chest of investable capital ever.
Healthcare Investment declined in both deals and dollars each quarter after setting a record in 2021. Total healthcare investment for the year still exceeded 2020, making 2022 the second-largest year ever, though Q3 and Q4 fell below 2020’s quarterly average. This decrease was likely because investors directed new money toward their existing portfolios instead of new investments, raising insider rounds to focus on hitting valuation inflections before the next outside financing. Additionally, the large crossover to initial public offering (IPO) rounds, common in 2020 and 2021, were down significantly in the face of a difficult IPO market. Read more.
