Why VC Interest in Biotechnology Companies Jumped in the Second Quarter of 2013

Posted by | July 24, 2013

The second quarter 2013 NVCA numbers came in, and while capital deployments in medical device companies declined 1 percent in both dollars and deals from the first quarter, deployments in biotechnology companies surged 41 percent in dollars and 4 percent in total deals over the same period.

Why were venture capitalists more willing to deploy capital in biotech companies than med tech companies?

The answer comes down to exit strategies, according to our own Gary J. Kurtzman, MD. Gary explains that an increasing number of pharmaceutical companies are seeking out promising new drugs, and since it is increasingly the small biotechnology companies that are responsible for developing new drugs, investors are naturally willing to support biotech companies.

But don’t despair if you prefer medical technology investments. To hear more from Gary about why biotech deals soared and what stands in the way of more med tech deals, jump over to the article in FierceMedicalDevices.

 

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