Venture Capital and Biosciences

Despite the economic turmoil in the financial sector, private equity continues to flow to biosciences firms. In 2007, venture capital firms invested $11.566 billion in biosciences. Between 2002–2007 funding was allocated as follows:

  • Biotech-​Human $15.119 (billion)
  • Pharmaceuticals $9.45
  • Medical therapeutics $9.326
  • Med/​Health products (including IT/​Software, products and services) $3.657

Of this funding, nearly 20% went to later stage products and the average deal was $18.32 million. So about 1 in 5 deals is linked to a product or service that is nearing a launch and will require marketing assistance. In some cases, biosciences firms market their products and services in the BtoB realm while other firms market directly to consumers.

Keep in mind that the pharmaceutical industry is increasingly blurring lines with the biosciences sector. As a result of advances in genetic research, pharmaceutical firms can now target specific populations with engineered and more effective treatments. These types of developments attract investors who are searching for return on equity and will eventually translate into demand for increased marketing.

Check out Batelle’s comprehensive report to find opportunities in your market area.

[Source: State Bioscience Initiatives, Batelle, 2008] 

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.