Corporate bio VCs are backing more rounds and making bigger bets

TechCrunch | 3/10/2018 | Joanna Glasner
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Joanna Glasner is a reporter for Crunchbase.

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Biotech - Lot - Venture - Capital - Amounts

Biotech is a lot like venture capital. Vast amounts of research, testing and marketing go into a wide range of therapies. But in the end, it’s just a tiny fraction that deliver most returns.

That similarity may be why most of the biggest biotech and pharmaceutical companies have a long history of engaging in the venture business as startup investors, spin-out creators and strategic partners. Since last year, the largest corporate players participated in funding rounds valued at more than $6.4 billion, according to Crunchbase data. Trendlines also show investment is on the rise.

Effort - Size - Scope - Growth - Trajectory

In an effort to measure the size, scope and growth trajectory of this startup funding space, Crunchbase News assembled a few data sets of the largest corporate venture investors in biotech. We culled through the largest companies by market cap and short-listed 19 with a history of active funding, often through dedicated venture arms.

Looking at these corporate investors in aggregate, we found that deal count hit the highest point in a decade in 2017. Average round sizes are also getting bigger, so it looks like corporate bio VCs are putting more capital to work, too. Following are some of our findings in more detail.

Size - Round - Venture - Industry - Bio

The size of the average round has been getting bigger across the entire venture industry. So it’s not surprising that corporate bio investors are following suit.

Last year, the VCs on our shortlist participated in 117 funding rounds valued at $5.2 billion altogether. That works out to an average of $44 million per round — by far the highest average in the past five calendar years.

Round - Sizes - Start - Size - Thanks

But round sizes may still have higher to go. So far, 2018 is off to an expensive start, with average round size of more than $60 million, thanks to recent funding...
(Excerpt) Read more at: TechCrunch
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