How much venture capital money is out there for healthcare start-ups?
Apparently, quite a bit.
According to a recent article in the Wall Street Journal, medical start-ups in the United States raised around $3.9 billion in venture capital during the first quarter of this year. Here are eight key trends from the report:
1. There is raising investor interest in biotechnology, digital health and healthcare services.
2. There is also a strong market for initial public offerings.
3. There is a quick steepening of the valuation curve, according to New LeafVenture Partners Managing Director Philippe Chambon.
4. Around $2.14 billion was sunk into biotechnology companies, up 72 percent from last year.
5. Drug manufacturers are investing billions in acquisitions, including Johnson & Johnson acquiring venture-backed Alios BioPharma for $1.75 billion last November.
6. Healthcare information technology investment totaled $429 million, up 56 percent over the same period last year.
7. Healthcare services financing received around $703 million in the first quarter of 2015.
8. The funding continues even as there is a declining interest in medical devices.