Monday, November 28, 2005

Health-Care Venture Capital Market Heats Up

"Health-care venture capital results for the six months ended June 30 primarily reveal rising trends, according to Healthcare Corporate Finance News, published by Irving Levin Associates Inc. in Norwalk, Conn.

The total amount of venture funding committed to health-care companies and the overall number of health-care venture capital financings increased during the first half of 2005. However, both the average, and median sizes of venturecapital deals decreased by approximately 16 percent during the period from the comparable, period last year.

Already this year, health-care companies have secured approximately $3.9 billion in venture funding, compared with about $3.6 billion for the first six months of last ear. So far, 235 venture financings in the health-care sectors have been announced this year, compared with 186 during the first six months of last year.
"Spinout companies emerging from universities and corporations account for a number or the smaller deals," commented Gretchen S. Swanson, editor of Healthcare Corporate Finance News.

Forty-eight health-care companies announced venture capital rounds of $25 million or more during the first half of this year, compared with 55 for the first, half of last year. Deals in this range account for approximately 54 percent of all venture capital committed to health-care companies during the period, but by comparison, accounted for approximately 65 percent of all health- care venture capital raised during the same period last year. "
For more information, visit www.EvanCarmichael.com.

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