Corporate venture capital investments in healthcare hit a five-quarter low in Q3, down in both deals and funding, according to a new report out from CB Insights. Compared to the quarter before, deals and funding decreased by 41 percent and 27 percent respectively. The tried-and-true players fared well: California, Massachusetts and Minnesota grabbed the CVC dollars. Johnson & Johnson (JNJ) Development Corp. and GlaxoSmithKline‘s (GSK) SR One were in the top 10 most active CVCs for the quarter.
Here are other highlights from the report:
- “Interestingly, while GE has made a number of investments in the healthcare sector in the past, its CVC arm GE Ventures most heavily invested in software, including BI firm Predixion Software and big data analytics startup Ayasdi in Q3.” (Although, it should be noted Predixion Software has made big healthcare deals in the last year, specifically with the Indiana Health Information Exchange to use its predictive software to reduce readmissions. While Ayasdi has moved beyond healthcare, it began with the claim it would use “big data to cure cancer.” So perhaps GE Ventures is just making a push for big data and data analytics in the healthcare space.)
- California and Massachusetts took nine out of every 10 CVC dollars spent on healthcare. Minnesota grabbed 8 percent of healthcare CVC funding.
- 33 percent of healthcare CVC deals were for Series C; Series A — only 11 percent.
- Series C deals represented more than half of the dollars spent in healthcare CVC.
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