Venture investments in biotechnology: the crisis is still being felt

In 2010, venture capital investment in the biotech industry did not grow too fast, but steadilyUNOVA

In 2010, venture capital investment in the biotechnology sector recovered from its low level in 2009, increasing by 3% in dollars and by 8% in transactions. This marks the beginning of recovery after 2009, when biotech investments fell by 19%. Such figures are provided in a MoneyTree report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA), based on Thomson Reuters data.

Nevertheless, the biotech industry dropped to second place in the overall standings, losing first to software, with its $3.7 billion investment and a total of 460 transactions. The fourth quarter was not at all strong for biotechnology – investments decreased by 24% in dollars, and the number of transactions decreased by 15%, and this is compared to $ 685 million and 94 transactions in the third quarter. Thus, there was a huge drop compared to the fourth quarter of 2009, when investments increased by 10% compared to the previous quarter. Life sciences and network equipment – only these two industries did not show double-digit growth in 2010, Fiercebiotech reports.

Although the biotech sector grew less than others in 2010, this is not necessarily a bad sign for the industry. "Unlike other industry sectors, which tend to change at a high rate, the life sciences sector continues to demonstrate a steady, directed level of investment," NVCA spokesperson Emily Mendell wrote in an email to FierceBiotech. "This resilience has served the sector for years, giving venture capitalists no reason to change their strategy."

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25.01.2011