Volume 85 Issue 18 | p. 18 | Concentrates
Issue Date: April 30, 2007

Biotech Garners Largest Share Of Venture Capital

Department: Business

Venture capitalists invested $1.5 billion in 102 deals to fund biotechnology companies during the first quarter of 2007, according to the MoneyTree Report by PriceWaterhouseCoopers and the National Venture Capital Association. Based on data from Thomson Financial, the report found that biotech attracted more investment capital than any other sector including medical devices, telecommunications, semiconductors, and entertainment. Software, traditionally the largest sector, attracted $1.1 billion. Overall, venture capitalists invested $7.1 billion—the highest dollar amount since the fourth quarter of 2001—in start-up and later-stage firms during the first three months of this year. NVCA President Mark G. Heesen points out that many venture capitalists are responding to the capital needs of later-stage biotech firms entering the regulatory process. For the first time, the published survey included a "clean tech" category composed of firms involved in alternative energy, pollution abatement, recycling, and conservation technologies. The new category attracted $264 million in 23 deals, up 41% in value from the fourth quarter of 2006.

 
Chemical & Engineering News
ISSN 0009-2347
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