PwC/MoneyTree report says biotech soars to record high: Investment in biotechnology was the highest since the start of the MoneyTree data series in 1995

SAN FRANCISCO – (August 26, 2014) – The new MoneyTree™ Life Sciences Report, from PricewaterhouseCoopers (PwC) LLP and the National Venture Capital Association (NVCA) based on data provided by Thomson Reuters, stated that San Francisco Bay Area, Boston, and San Diego Metro – the “Big 3” — received the most life sciences venture capital (VC) dollars during the second quarter of 2014.

The leader, San Francisco Bay Area, received $866 million, with $632 million allocated for biotechnology and the remaining $234 million going to medical devices. The San Francisco Bay Area closed 54 deals during the second quarter of 2014, with an average deal size of $16 million.

“The largest life sciences deal of the quarter—the $200 million investment in Boston-based biotechnology Intarcia Therapeutics—is the single largest deal for Boston across all industries in almost 20 years,” said Greg Vlahos, life sciences partner at PwC. “This is a reflection of Boston’s position as a center for biotechnology innovation. Boston-based companies will play an increasingly important role in the life sciences industry and will continue to attract top VC dollars.”

Venture capitalists invested $2.5 billion in 195 life sciences deals during the second quarter of 2014, compared with $2.0 billion in 197 deals during the same period in 2013. Life sciences investment during the quarter was the highest since the second quarter of 2007, and also the strongest second quarter for life sciences since 1995, when the data series started.

“The industry’s stellar fundraising quarter is due to a virtuous cycle for biotechs,” said Vlahos. “The IPO boom has provided VCs with some very real exit opportunities, and the public markets’ warm reception to drug developers has pushed M&A valuations skyward. Combined, those factors have created significant liquidity for investors, allowing VCs to quickly gather new funds and back more companies.”

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