HEALTH CARE VENTURE CAPITAL
DRAGS, DECLINING 34% DURING THIRD QUARTER 2004 ACCORDING TO JENKS HEALTHCARE
BUSINESS REPORT
NEW CANAAN, CT October 1, 2004 Preliminary
results for the third quarter, ended September 30, 2004, indicate a 34%
decline in total venture capital committed to the health care markets, and a
15% decrease in the total number of investments, compared with the previous
quarter, according to Jenks Healthcare Business Report, published by Irving
Levin Associates, Inc., a research and publishing firm tracking financial
activity in the health care markets. During the third quarter, a total of 94
venture capital investments amounting to $1.3 billion were recorded,
bringing the totals for the year so far to $5.3 billion committed to fund
408 transactions. The four most active venture capital firms of the third
quarter of 2004 each participated in five financings.
|
TOP 15 VENTURE INVESTORS, Q3:04 |
| Venture Capital Firm |
Number of Investments |
| Burrill & Co. Funds |
5 |
| Novartis Funds |
5 |
| Oxford BioScience Partners |
5 |
| Techno Venture Management |
5 |
| 3i Group |
4 |
| Aravis Ventures |
4 |
| California Technology Investors |
4 |
| Sprout Group |
4 |
| Alta Partners |
3 |
| Bay City Capital |
3 |
| Frazier Healthcare |
3 |
| Global Life Science Ventures |
3 |
| H.I.G Ventures |
3 |
| MDS Capital |
3 |
| Perseus-Soros Biopharmaceutical |
3 |
In comparison to the year-ago quarter, there has been a
downswing of 6% less capital committed to 11% fewer venture financings. The
pharmaceutical, biotechnology, biopharmaceutical and medical device sectors
are still attracting the greatest attention from venture capitalists.
Stephen M. Monroe, Managing Editor of Irving Levin Associates, Inc., states,
For the year ended 2003, over $5.5 billion funded 386 deals. In spite of
some recent uncertainty regarding IPOs, the health care venture capital
market is on track to surpass the performance witnessed last year. Mr.
Monroe also commented that, The pharmaceutical and biotechnology sectors
continue to be popular among institutional investors and venture
capitalists, and we expect to see more funds flow into electronic medical
records technology companies, following the 2004 presidential election.
About Jenks Healthcare Business Report:
The monthly newsletter Jenks Healthcare Business Report and its companion
annual report, The Health Care Venture Capital Report, are published by
Irving Levin Associates, Inc., a leading health care financial publisher
established in 1948. The Firm has headquarters in New Canaan, CT and is
online at www.levinassociates.com. This privately held corporation publishes
research reports and newsletters, and maintains merger and acquisition
databases, on the health care and senior housing markets. For more
information on Jenks Healthcare Business Report, please call 1-800-248-1668.
Click here to get more information or to order any of our
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