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Private Equity and Venture Capital Funding Crucial for Healthcare Innovation, says GBI Research

Wednesday, November 16, 2016 Research News
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LONDON, November 16, 2016 /PRNewswire/ --
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Private equity (PE) and venture capital (VC) funds have been important participants in a wide range of industries for many decades - particularly the healthcare industry. They remain one of the few sources of funding for innovative start-up companies, which often bring disruptive technologies and life-saving medical interventions to the market.
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GBI Research's new report Strategic Trends in Private Equity and Venture Capital Funding for Healthcare provides in-depth qualitative and quantitative analyses of global and regional trends that have shaped the current healthcare PE and VC landscape, particularly from 2006 to 2015. Some of the key insights the report provides are:

  • In 2015, 6 of the top 10 PE healthcare deals were in services. Healthcare service providers and outsourcing companies such as contract manufacturing organizations continue to witness significant investments.
  • The healthcare industry's share of total US VC investments decreased by 10 percentage points from 2010 to 2015. This was despite US VC investments growing at a compound annual growth rate (CAGR) of 9.7% over the same period.
  • 65% of total US VC investments were channeled to fund expansion-stage and late-stage companies in 2015, while seed-stage companies accounted for only 1.7%. VC investment in early-stage healthcare companies continues to decline, particularly outside the US.
  • Therapy areas that attracted significant investments from PE and VC firms in 2015 included oncology, central nervous system disorders, and immunology.
  • Despite an uptick in recent years, healthcare PE deals by value witnessed an overall decline from 2010 to 2015, exhibiting a negative CAGR of 12%.
GBI Research's analyses show that PE investors believe that certain segments of the healthcare industry represent good opportunities for profitable investment of capital, despite the challenges the overall industry continues to face.

The report also identifies geographical markets attracting noteworthy investments. Many parts of the Asia-Pacific region, including India, remain significantly under-represented in terms of healthcare spending per capita, and therefore represent strong potential. Consequently, PE activity in this region is expected to continue to increase, as it has done over the past three years.

Analyses of key investment indicators in the US, including levels of fundraising activities by PE and VC companies, VC investments by industry sector, and VC-backed exits and venture financing trends - particularly for early-stage healthcare companies - are also provided.

This new report adds to GBI Research's unique portfolio of trusted industry analyses that enable our clients to assess the most promising areas in the market and exploit key business opportunities.

Sample pages of GBI Research's report Strategic Trends in Private Equity and Venture Capital Funding for Healthcare are available upon request.

About GBI Research 

GBI Research is a leading provider of business intelligence reports, offering actionable data and forecasts based on the insights of key healthcare industry influencers to ensure you stay up-to-date with the latest market trends. For more information about our offerings, please contact us on:

+44 161 359 5817 

Connect with GBI Research on social media for the latest healthcare market updates:

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SOURCE GBI Research

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