Q1 2015 Life Science Financing Roundup

30 Apr

By Lucy Parkinson, Senior Research Manager, LSN

lucy 10*10

It’s been an exciting Q1 for the biotech industry, with the PwC MoneyTree Report recording 193 biotech and medtech venture financing deals. The LSN Company Platform tracks life science financing events more broadly than the MoneyTree Report; in addition to venture financing rounds, the platform also records other forms of financing secured by the 30,000 biotech and medtech companies tracked, including debt financing, research grants, IPOs, and post-IPO offerings. This is useful information if you’re providing services in the life science sector and need to know your customers’ capital landscape. The platform also records the lead investor and any co-investors in each financing event.

It may be months before all the deals that took place in Q1 are formally announced and accounted for, but at present the LSN Company Platform has recorded 229 life science financing events that took place in Q1 2015. These financings raised a total of almost $10 billion, buoyed by huge late stage private rounds and follow-on public offerings. Among the financing events LSN tracked, the median amount raised was $15 million. Figure 1 provides a complete breakdown of the amount raised by the financing events recorded in Q1:

F1

Figure 1 | Source: LSN Company Platform, Data as of March 31, 2015

 

Q1 saw a healthy crop of small, sub-$5 million rounds, which are typically raised by early stage companies, but also many significantly larger raises, including post-IPO financings in which companies that went public in 2013 and 2014 tapped the markets for additional capital.

While the bulk of the tracked financing events occurred in the U.S., the LSN Company Platform also recorded deals in Canada and throughout Europe, the Middle East, Asia, and Oceania (see Figure 2).

F2

Figure 2 | Source: LSN Company Platform, Data as of March 31, 2015

 

In 157 cases, the LSN Company Platform recorded the indication areas in which the companies are developing assets (in many cases, the companies were targeting more than one indication area). Figure 3 shows that oncology was the leading field for financing, with 62 oncology companies raising money in Q1; companies in diseases of the nervous system and metabolic diseases rounded out the top 3 indications for life science financing.

F3

Figure 3 | Source: LSN Company Platform, Data as of March 31, 2015

 

In 125 of the 229 records, the LSN Company Platform was able to track the phase of development of a company’s lead asset. (The rest include companies for which this isn’t relevant or doesn’t fit on the biotech development pathway, such as life science service providers and many medtech or healthcare IT companies, and cases in which the phase of the lead asset is unknown). As Figure 4 shows, the largest number of raises involved companies with a lead asset in Phase II, but LSN tracked financing events for companies as early in the pipeline as the discovery stage:

F4

Figure 4 | Source: LSN Company Platform, Data as of March 31, 2015

 

This chart demonstrates that it’s never too early to think about financing, even if your company is still at the discovery stage of development. In addition to giving you some vital runway time, talking to investors now can help you plan out your future fundraising path; financing rounds generally take 9 to 18 months to close, and the more interested investors you can be in touch with at the early stage, the easier it will be to bring those later rounds together.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: