Beyond borders - global biotechnology report 2011
Funding biotech projects
Capital raised in the US, Europe and Canada, 2000–10 (US$m)
Overall capital raised held steady in 2010, but access to funding has become more skewed.
The big picture
Companies in the US, Europe and Canada raised slightly more than US$25 billion in 2010, an impressive 8% increase over 2009. This is roughly equal to the average amount raised during the four years immediately preceding the crisis.
Venture funding was essentially flat compared to the year before, and IPO funding rebounded somewhat. The bulk of the growth in funding came from the "Other" financing category, where mature, profitable companies entered large debt transactions in a low interest-rate environment.
Capital raised in the US, Europe and
Canada, 2000–10 (US$m)
Despite this impressive rebound in aggregate financing, funds are increasingly concentrated in fewer companies, driving many firms to restructure, partner earlier or cease operations altogether.
Venture capitalists are deploying funds differently as less capital flows into their funds and they need to hold their investments longer. More investments are tranched and VCs are insisting on capital-efficient strategies at their portfolio companies.
While IPO proceeds crossed the US$1 billion threshold for the first time since 2007, public investors remain selective and very price sensitive.
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