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Don’t let the IPOs fool you. Healthcare deal activity and funding were down in Q3

October 10, 2013 9:14 am by | 0 Comments

cb insights q3Womp womp. Though Q3 saw 13 healthcare industry IPOs–a five-quarter high, the past quarter also had the lowest financing amount for healthcare in the last five quarters, according to CB Insights. Funding declined 36 percent from Q2. Medical devices represented 33 percent of healthcare venture capital financing.

cb insights q3 med devices

Surprisingly, Series A and seed funding combined pulled in 40 percent of the deal share. More highlights from the report:

  • While the healthcare sector saw 13 VC-backed IPOs in Q3, investors pulled back from the sector as deal activity and funding declined 27% and 36% from a quarter ago resulting in the lowest financing amount in the past five quarters.

  • Deal activity in the mobile sector also hit its highest quarterly mark in history, topping healthcare deal share for the first time.

  • Internet-enabled healthcare and health & wellness startups took a combined 11 percent of funding as the digital health vertical heats up.

  • California and Massachusetts combined to take nearly 70 percent of all healthcare dollars in Q3. Minnesota came in a distant third for funding with deals to medical device firms CVRx and NxThera.

  • Massachusetts saw funding share rise for the third consecutive quarter capturing nearly 1 of every 4 healthcare dollars in Q3.

 

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Lindsey Alexander

By Lindsey Alexander

Lindsey Alexander is an Indiana-based freelance writer and editor covering the medical device industry. She earned a degree in journalism from Indiana University and a master's from Purdue.
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