DOCSLIB.ORG

The Case for International Venture Capital Firms

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Case for International Venture Capital Firms 1 Global Innovation – The Case for International Venture Capital Firms By Adj. Prof. Dr. Martin Haemmig, August 2004 The global economy has fuelled the growth of entrepreneurship and created investment opportu- nities almost anywhere in the world. Entrepreneurs continue to develop innovations that create new markets and businesses. These companies increasingly need to be global in scale, in order to successfully capture market share and build out to a sustainable business that pays solid returns to investors. The following overview by the author is a compilation of research, think-tank initiatives, round tables, conferences and discussions over the last 6 months with investors, VC firms, corporate investors, entrepreneurs and venture capital associations in Asia, Europe, Israel and the United States. It includes the cumulative learning from the “Globalizing Venture Capital” module at NVCA’s Venture Capital Institute (graduate program), which the author designed and moderated in February 2004 in San Jose/CA. Global Technology Demand Drives International Startups and Their VC Firms Competition drives small and large corporations for efficiencies in any aspect of the business. Technology is one relevant factor that can assist these firms to either remain or emerge as leaders in their global environment. The pressure from shareholders on their returns forces these players to focus increasingly on their core business, speeding up time to market with new products or services, and thus search for external technologies to complement their internal R&D efforts. This provides huge opportunities for startups to provide some missing product or service pieces to help these larger firms stay competitive in their offering. This demand spurs increasingly a circle that includes larger corporations, startup companies, their venture capital firms and fund investors. It is this environment that requires international VC firms to provide their expertise of building companies and their global network to enable startups to go international. The added value by international VCs helps build faster and more globally exposed startup companies that lead to bigger and more competitive firms and thus potentially higher re- turns for VC funds if executed properly. Global Direct Investment Flows Into Startups Across Geographies Foreign “direct investments” to local portfolio firms and investments made outside the domestic market can be significant (2003 data – VentureXpert/Venture Economics). EU 2.8% USA 51.3% USA 96.7% USA 84.1% Asia 0.8% Asia 0.5% Asia 40.1% Israel 0.3% U.S.-based VCs invest 81% domestically Israel 0.4% Israel 0.2% EU 3.1% EU 3.7% and 19% in foreign countries. Europe’s VCs ($1.4B) ($3.2B) ($0.6B) ($1.8B) invest 88% in their region, while an additio- +6% +52% +140% +88% nal 12% goes overseas. Israel’s VCs invest 86% in Israeli and/or Israel-related startups. Asian VCs invest 71% in their region, while 88% 29% is directed to overseas companies, 81% $6.2B 86% mainly in the U.S. but increasingly in Israel. $24.2B $0.42B 71% On the other hand, U.S. portfolio compa- $2.0B nies receive an additional 6% on top by foreign VC firms. Europe’s VC-backed 19% 12% 13% 29% entrepreneurial firms obtain an additional ($5.6B) ($0.8B) ($0.1B) ($0.8B) 52% (mainly USA) on top of their VC firms, EU 10.7% USA 9.7% USA 12.0% USA 21.8% Asia 5.7% Asia 1.0% Asia 0.6% Israel 6.5% Israeli firms 140% and Asian companies Israel 1.3% Israel 0.3% EU 1.4% EU 1.3% 88% above their domestic VC volume. RoW 1.4% RoW 0.7% RoW 0% RoW 0.4% Global Investment Flows in 2003 – USA, Europe, Israel, Asia (VentureXpert/Venture Economics, 06-2004) 2 Opportunities and Challenges for International Venture Capital Firms Innovation in high-technology by startup companies in recent years has occurred increasingly outside the Silicon Valley and Boston’s Route 128, since governments in other parts of the world have understood the relevance of commercializing innovations as a major force for the competi- tiveness of their nation. Entrepreneurship education has gained grounds in most countries in Europe and in key countries in Asia and in Israel. America’s National Venture Capital Association (NVCA) survey in 2002 revealed that 90% of respondents wanted to know more regarding venture capital outside the United States, both for looking at investment opportunities and to access capi- tal. This was unheard of a decade ago. The entrepreneurial environment outside the U.S. is substantially improving and the impact of American VC firms, with their longstanding tradition of building companies with their hands-on style, has gained great acceptance, particularly through co-investment opportunities with these seasoned venture capitalists. The younger venture capital markets outside the United States have inefficiencies that can be exploited in joint efforts between the American and foreign VC firms. Governments in most countries are improving their legal, regulatory, fiscal and educational environment, which pave the wave for large business opportunities. These countries try to build some clusters of expertise with an appropriate ecosystem for venture creation, which permit their entrepreneurs to build their companies in their home country. There is no doubt, however, that the main markets for most of them will be overseas or in neighboring countries. Israel as a small country, with virtually no local market, has proven the VC-model. Many other countries are rich in technological innovations and/or have a large domestic market, where exploi- tation of such opportunities is waiting, although cultural issues in Europe and Asia have so far been a major stumbling block. Current and forthcoming stories of successful startups in these geogra- phies will start breaking down these cultural barriers. Key issues center on management control and lack of understanding market dynamics for building larger, global companies, because entre- preneurs are too focused on their technology and less on building a global company. Apart from the U.S. and Israel, Europe and Asia start to see their first serial entrepreneurs on their second startup firm, a critical element of shortening the industry’s learning curve. The VC firms will be able to hire new partners with the valuable experience of building a venture-backed startup with a global market. With these elements gaining momentum and critical mass, combined with the learning of the failures during the bubble, Europe and Asia will experience a professionalization of the venture industry in the years to come and with it larger opportunities for investments and lucra- tive returns. Most American venture firms are locally focused businesses and most European VCs concentrate at best on the European market, yet market forces pushes them to expand their international capa- bilities, not only to invest in foreign startups but also to assist their portfolio companies to access their global markets. Exits through public exchanges are not as liquid in Europe and Asia when compared with Nasdaq in the U.S. and thus a fast-growth company may find it crucial to go public where their main market and investors are…. the United States. Market Dynamics Market opportunities are the key driver for innovation. The needs and competition is often global, however, the markets to be addressed are regional or local. Especially in new emerging and inno- vative markets, it may take a few years to see the key players being active in all the larger econo- mies. Startups that concentrate solely on their less competitive local or regional market may be squeezed out later when their strong international competitor moves in. The example of Brokat proves this case: The company started in the new segment of transaction based middleware for the Internet in the European market, initially almost without competition. Potential American com- petitors such as NetDynamics and Kiva (later acquired by Sun Microsystems) or BEA Systems, focused initially on the large, attractive U.S. market. Only when Americas high-growth market was 3 substantially exploited, and their partners such as Sun and Hewlett-Packard targeting the under- served European market, did the young American companies start their European market pene- tration systematically and consequently, in a joint effort with their large collaborators. European local players such as Brokat got gradually squeezed out and faltered their business. It is of crucial importance that startups understand the competitive landscape and forces in the different regions, an activity that is time consuming and often costly for individual companies but something that could done by venture capital firms, especially if they focus on certain industry sectors. Most startups don’t understand sufficiently their current and potential competitors and focus on simply building the faster “mousetrap”. If a new market seems promising, large corpora- tions, however, can easily allocate either substantial resources to catch up and become not the first-mover but first-prover, or acquire a small, emerging competitor. 4,253 USA: Of 6,217 VC-backed companies, only 148 (2.4%) have a physical presence in Europe. 6,217 227 (5.3%) EU: Of 4,253 VC-backed companies, 30 (7.1%) only 227 (5.3%) have a physical 148 (2.4%) presence in the United States. 424 IL: Of 424 VC-backed companies 138 (32.6%) (about 1/2 of Israel’s pool), 138 (32.6%) have a physical presence in USA and 30 (7.1%) in Europe. International Offices of VC-Backed Companies in 2003 (VentureOne) Many startups don’t understand the nuances of power and decision making mechanisms in the different regions. Those not understanding the entities defining the requirements, the decision makers and the ones that finally procure the product or services, will hardly ever have a chance to succeed in a new market.
Load more

Recommended publications
  • Q1 09 Fundraising Update
    www.preqin.com Preqin Ltd. Q1 2009 Private Equity Fundraising Update Special Report 23rd April 2009 © 2009 Preqin Ltd. / www.preqin.com 2 ◄ Q1 2009 Fundraising Update Q1 Overview The Coming Turn in Fundraising As everyone is painfully aware, Fig. 1: fundraising conditions in Q1 2009 were dire. Looking across all private Final Close vs. Original Target equity fund types (venture, buyout, mezzanine, distressed, fund of funds etc.), a total of only 78 funds worldwide achieved fi nal closes, raising $49 billion between them. This represents a return to the kind of levels we were experiencing in 2004 following the trough of the previous fundraising depression. As bad as these headline statistics are, they actually disguise just how bad fundraising conditions had become. Faced with a very diffi cult market, many managers who were on the road decided to cut their losses and declare fi nal closes for funds that may have two-thirds of all funds closed were equity fundraising is set to rebound actually raised most of their funding achieving between 80% and 120% strongly: in interim closes six or twelve months of their targeted amount. Around previously – hence much of the money 15% of funds fell short by more than • LP Intentions: Preqin regularly in the ‘fi nal closes’ total was actually 20%, while 20-25% of funds exceeded surveys LP intentions, and even raised in previous quarters. Very little their targets by 20% or more. The in the depths of the credit crisis new money was committed in Q1 situation deteriorated markedly in Q4 in December 2008 these LPs 2009.
    [Show full text]
  • The Art of Exiteering
    THE ART OF EXITEERING In conversation with European tech founders NOTION INSIGHTS Start. Grow. Succeed 1 Notion Insights is published by Notion Capital, 91 Wimpole Street, London W1G 0EF. Registered address: Third Floor, 1 New Fetter Lane, London EC4A 1AN Contact Notion Capital is a trading name of The Fund Incubator +44 (0)845 498 9393 Limited – registered in Scotland Co No SC218683. [email protected] MBM COMMERCIAL, 5th Floor 125 Princes Street, Edinburgh, Scotland, EH2 4AD. Content Authorised and Regulated by the Financial For opportunities to contribute to future editions Conduct Authority. of Notion Insights please contact Kate Hyslop. Reproduction in whole or in part without written Design permission is strictly prohibited. [email protected] © 2017 Notion Capital. All rights reserved. The Art of Exiteering is brought to you by Supported by 2 3 Contents The Art of Exiteering: In conversation with European tech founders 6 / Introduction 44 / Professional Perspectives 82 / The Qlik Story Stephen Chandler Daniel Glazer, Steven Bernard Måns Hultman and Bradley Finkelstein 8 / The Advisor’s View – from the EY Fast Growth Team Wilson Sonsini Goodrich & Rosati 86 / Professional Perspectives Kevin McGovern, Advisor 10/ Executive Summary 49 / The Hybris Story The Art of Exiteering: In conversation Stefan Schmidt 91 / The Thunderhead Story with European tech founders Glen Manchester 54 / The MessgeLabs Story 16 / The Astonishing Tribe Story Ben White, Jos White, Stephen Chandler 96 / The Scansafe Story Hampus Jakobsson and Chris
    [Show full text]
  • Pharma Asset Insights POWERED by SCRIP and in VIVO
    Pharma intelligence Pharma Asset Insights POWERED BY SCRIP AND IN VIVO Bringing science innovation and partnering news to the biopharmaceutical business community Pharma intelligence Innovation in the pharmaceutical industry has never been more exciting, and complicated. Disruptive technologies, such as artificial intelligence and digital health tools, and advanced therapeutic modalities including cell and gene therapies and antisense oligonucleotides demand that all health care stakeholders make efforts to move into the next generation of patient care and centricity. Funding for start-ups has reached an inflection point, with venture capital money flowing into companies at a rapid speed and at record-high amounts, particularly for those located in Europe. In 2013 only three life science venture capital rounds surpassed $100 million; by the first quarter of 2018, those financings have become more of the rule than the exception, as 10 venture rounds worth over $100 million were completed, led by a massive $500 million late-stage funding from Moderna Therapeutics. Many of these firms have progressed to the IPO stage, where markets have been very favorable over the past couple years. Indeed, 11 biopharma IPOs netted an aggregate $1 billion in Q1 2018, and included a $56 million offering from BioXcel Therapeutics, which is using artificial intelligence to identify the most promising neurological and immune-oncology drug candidates to advance. Overall, companies involved in mining and applying predictive analytics to big datasets have been well funded recently, including BenevolentAI, which closed on a $115 million financing, and Pear Therapeutics, a digital health company that has raised $50 million and signed on Novartis to market its reSET digital therapeutics product for substance abuse.
    [Show full text]
  • 3Rd FCF Life Science Venture Capital Report
    FCF Life Science Research 3rd Life Science Venture Capital Report – Financing Trends in Europe and the US Fungi Penicillium Part of FCF Life Science Research Series Executive Summary FCF Overview Funding Development in 2018 Life Sciences: A closer Look C r o s s - border Investment Activity Investor Analysis Life Science Exits 2 Executive Summary The FCF Life Science Venture Capital FCF Life Science Venture Capital Report Recipients Report is a is a comprehensive, standardized analysis for biotechnology, The FCF Life Science Venture Capital Report targets the following standardized report pharmaceutical and medical technology companies, examining recipients: focusing on venture recent venture capital deal trends in the European life science ▪ Corporates / Executives ▪ Venture capital investors capital deal industry ▪ Institutional investors ▪ Family Offices / High- characteristics in the ▪ Private equity investors net-worth individuals biotechnology, ▪ Advisors Selection of Companies pharmaceutical and medical technology The selection of companies is based on the following criteria: Availability segments, and can be used as a quick ▪ Companies operating in the biotechnology, pharmaceutical, The FCF Life Science Venture Capital Report is available on FCF’s reference for medical technology, services or other life science related sectors website at “https://www.fcf.de/de/research/life-science-research“ investors, corporates ▪ Sole focus on transactions involving European life science and professionals companies Data ▪ The therapeutics sector is further divided into the following All input data is provided by Pitchbook, S&P Capital IQ or More advanced, indications: Oncology, Central Nervous System, Infectious GlobalData and is not independently verified by FCF. Ratio and detailed and / or Diseases, Immunology, Ophthalmology, Rare Diseases, multiple calculations are driven based on the input data available.
    [Show full text]
  • United States
    UNITED STATES BIOPHARMACEUTICALS 2020 BIOPHARMACEUTICALS UNITED STATES UNITED STATES BIOPHARMACEUTICALS 2020 Research and Development - Contract Services - Drug Discovery Academic Research Regulations and Compliance - East Coast Hubs - Logistics and Distribution Amos i m 0 0 5 Fredericton Timmins Quebec i m 0 0 4 The East Coast Corridor: MAINE i m Bangor The Heart of 0 0 American Biopharma 3 Montreal Augusta Dear Reader, i Ottawa m 0 VERMONT CANADA 0 2 Montpelier NEW HAMPSHIRE Portland Kingston i The United States Biopharmaceutical industry is widely envied m 0 0 Concord around the world, and for good reason. From gene editing, to cell- 1 Welcomebased to therapies, the 2020 toedition profoundly of the new US Biopharmaceuticalways of manipulating Industry immune Report, a jointcells GBR-CPhI to target analysis. cancers, Thetoday’s United science States is being Biopharmaceutical translated into industryprac- is Toronto widelytical envied treatments around forthe patients world, and at breakneck for good reason.speed. FromBiopharma gene editing,com- to MICHIGAN Albany BOSTON cell-basedpanies therapies, have achieved to profoundly remarkable new progressways of manipulating in advancing immune early dis cells- to Rochester MASSACHUSETTS targetease cancers, detection today’s and science enabling is being targeted translated treatments into practical with limited treatments side for NEW YORK patientseffects. at breakneck These innovations speed. Biopharma have catalyzed companies significant have reductionsachieved remark in - Buffalo Providence
    [Show full text]
  • Life Sciences Venture Equity Market Review: the Evolving Role of Crossover Investors
    Life Sciences Venture Equity Market Review: The Evolving Role of Crossover Investors June 2021 Securities offered in the United States are offered through Torreya Capital LLC, Member FINRA/SIPC. In Europe such services are offered through Torreya Partners (Europe) LLP, which is authorized and regulated by the UK Financial Conduct Authority. The Market for Equity Privates in Life Sciences TORREYA | PRIVATE LIFE SCIENCES VENTURE FINANCING MARKET REVIEW – JUNE 2021 2 Total Private Venture Financing Volume: 2000-2021 H1 Given volumes in the first half of this year, there is little doubt that 2021 will shape up to be the most active year in history for private financing activity in the life sciences sector. Total Volume of Private Biopharma, Diagnostics and Tools 50000 Financing Rounds by Year Jan 2000 - June 2021 600 (deals over $25mm, excluding medical devices, worldwide) 45000 523 500 40000 35000 373 400 356 30000 334 25000 300 20000 224 226 Transaction Transaction Count 184 200 15000 145 138 121 122 111 10000 109 88 97 96 81 72 100 Aggregate Aggregate Dollar Volume of Private Financings ($mm) 55 5000 40 35 23 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1 Transaction Count Dollar Volume ($mm) Source: Torreya analysis and records, CapitalIQ and Crunchbase TORREYA | PRIVATE LIFE SCIENCES VENTURE FINANCING MARKET REVIEW – JUNE 2021 3 Fresh Venture Capital Flowing into Life Science Sector We are on track to see record amount raised in life science venture capital in 2021.
    [Show full text]
  • The View Beyond Venture Capital
    BUILDING A BUSINESS The view beyond venture capital Dennis Ford & Barbara Nelsen Fundraising is an integral part of almost every young biotech’s business strategy, yet many entrepreneurs do not have a systematic approach for identifying and prioritizing potential investors—many of whom work outside of traditional venture capital. re you a researcher looking to start a Why and how did the funding landscape During the downturns, it quickly became Anew venture around a discovery made change? apparent that entrusting capital to third-party in your laboratory? Perhaps you have already The big changes in the life science investor alternative fund managers was no longer an raised some seed money from your friends landscape start with the venture capitalist effective strategy, and investors began to with- and family and are now seeking funds to sus- (VC). In the past, venture capital funds were draw capital. The main reason for the with- tain and expand your startup. In the past, the typically capitalized by large institutional drawal (especially from VCs in the early-stage next step on your road to commercialization investors that consisted of pensions, endow- life science space) was generally meager returns would doubtless have been to seek funding ments, foundations and large family offices across the asset class; despite the high risk and from angels and venture capital funds; today, with $100 million to $1 billion in capital long lockup periods that investors accepted in however, the environment for financing an under management. Traditionally, the major- return for a promise of premium performance, early-stage life science venture looks strik- ity of these institutions maintained a low-risk, VCs were often not returning any more capital ingly different from that familiar landscape low-return portfolio of stocks and bonds that than investors would have earned by making of past decades.
    [Show full text]
  • UNITED STATES SECURITIES and EXCHANGE COMMISSION Washington, D.C
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. )* AVROBIO, INC. (Name of Issuer) Common Stock, $0.0001 par value per share (Title of Class of Securities) 05455M100 (CUSIP Number) Atlas Venture Attention: Ommer Chohan, Chief Financial Officer 400 Technology Square, 10th Floor Cambridge, MA 02139 USA (857) 201-2700 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) July 19, 2019 (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ☒ Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent. * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
    [Show full text]
  • Biotechnology Startups Research Report
    GLOBAL BUSINESS CONFIDENCE REPORT 4th Qtr. 2019 B IOTECH NOLOGY STARTUPS RESEARCH REPORT 4th Quarter 2019 www.tradecouncil.org www.qibcertification.org International Trade Council www.tradecouncil.org www.goglobalawards.org Page 1 MARKET OVERVIEW REPORT FOR ENTERPRISE ESTONIA Table of Contents Overview ........................................................................................................................................................................... 3 Industry Definition .......................................................................................................................................................................................... 3 Sectoral Definitions ........................................................................................................................................................................................ 3 Main Activities .................................................................................................................................................................................................. 4 Associated Industries ..................................................................................................................................................................................... 4 Industry at a Glance ......................................................................................................................................................... 5 Industry Overview ..........................................................................................................................................................................................
    [Show full text]
  • REPORT 2015 Vol. 6
    REPORT 2015 vol. 6 Forward-thinking articles from our global network of innovation ecosystem experts KFR Staff KF Board of Directors Publisher Brian Dovey, Chairman Kauffman Fellows Press Domain Associates Executive Editor Tom Baruch Phil Wickham Formation 8 Managing Editor Jason Green Anna F.Doherty Emergence Capital Partners Associate Editor Karen Kerr Leslie F. Peters Agile Equities, LLC Production and Design Audrey MacLean Anna F. Doherty Stanford University Leslie F. Peters Susan Mason Printer Aligned Partners Almaden Press www.almadenpress.com Jenny Rooke Copyright Fidelity Biosciences © 2015 Kauffman Fellows. All rights reserved. Christian Weddell Under no circumstances shall any of the information provided herein be construed as investment advice of any kind. Copan About the Editor Phil Wickham Anna F. Doherty is an accomplished editor and writing Kauffman Fellows coach with a unique collaborative focus in her work. She has 20 years of editing experience on three continents in a variety of business industries. Through her firm, Together Editing & Design, she has offered a full suite of writing, design, and publishing services to Kauffman Fellows since 2009. Leslie F. Peters is the Lead Designer on the TE&D team. www.togetherediting.com www.kauffmanfellows.org Town & Country Village • 855 El Camino Real, Suite 12 • Palo Alto, CA 94301 Phone: 650-561-7450 • Fax: 650-561-7451 Venturing into the Industry: Lessons Learned from a VCpreneur Ahmad Takatkah Class 17 My life has been swinging between in Empretec,2 an international entrepreneurship and venture capital for more entrepreneurship training program than ten years now. In each cycle, I get closer that is managed by the United Nations and to my goal, even as I refine my goals further.
    [Show full text]
  • Insurance Technology Four Trillion Dollar Industry Finally Goes Digital
    Insurance Technology Four Trillion Dollar Industry Finally Goes Digital Greg Roth, Partner Ben Howe, CEO Matei Sanders, Principal Catch the Wave . Insurance Technology is riding a wave of innovation and investment that is attempting to do in a few short years what the insurance industry itself has failed to do over the last decade: a complete digital migration across all business processes . With $4.6 Trillion in global annual premiums, or 5.6% of global GDP, the insurance industry is a highly attractive market where incumbents have been slow to embrace innovation . There are three competitive threats at work in the insurance market and they all point to Technology Disruption: (1) an explosion of well funded, InsureTech startups; (2) the feared entry of the B2C tech “titans” (i.e. Google, Amazon, Facebook, etc.); and (3) incumbents racing to adopt modern enabling technologies . Investors can sense the opportunity: InsureTech investments are up six-fold over the last five years across at all stages of funding . Whereas this first wave has primarily focused on distribution, a second wave is taking aim at how insurance products are designed, priced, and operated . Incumbents’ initial reaction has been to partner and invest mostly in enabling technology . These market forces point to increased M&A activity as customer demand will make InsureTech solutions key to an insurer’s customer acquisition and retention strategy (# of Private Insurance Tech Investments Ramping Placements) 200 173 150 122 100 91 63 46 50 28 0 2011 2012 2013 2014 2015 2016 Source: Capital IQ, CB Insights 2 Investment in Technology Pays Dividends Investment in Technology Translates to .
    [Show full text]
  • European Life Sciences Start-Ups Maintain Early Investor Allure
    invivo.pharmaintelligence.informa.com FEBRUARY 2018 Invol. 36 ❚ no. 02 Vivopharma intelligence ❚ informa European Life Sciences Start-Ups Maintain Early Investor Allure BY JOHN HODGSON AND MIKE WARD US Medtechs Lag In Global Shift IO Is Making Pharma Step Up GE Healthcare: To Value-Based Care Its Diagnostics Game The Strategic Language Of Software invivo.pharmaintelligence.informa.com ❚ LIFE SCIENCES INVESTING LIFE SCIENCES INVESTING ❚ European Life Sciences Start-Ups Maintain Venture capital investment in life sciences companies continues to rise. In 2017, biopharma and medtech start-ups raised $19.7 billion worldwide. European businesses Early Investor Allure retained a robust share of that global take and investors expect that trend to continue. BY JOHN HODGSON AND MIKE WARD t has never been a better have put similar amounts of money into time for life sciences start- finance ventures or Internet companies ups to raise money from or into consumer enterprise or business venture sources. In 2017, services. Looking across all venture in- according to data compiled vestments, health-related VC is around by Informa Pharma Intel- As if to prove that 20% of the $22 billion total in Europe, ligence, venture capitalists estimated by FinSMEs, a pan-sectoral invested a total of $19.7 bil- author Douglas investment website. Biotech accounts for lion in the sector across the around 14% of the total and medtech for globe – some $15.1 billion Adams was right all about another 3%. Shutterstock: Copyright Info Copyright Shutterstock: allocated to 512 biopharma-focused op- Life sciences companies come out well portunities while $4.6 billion was invested along, the leading B as recipients of big ticket venture back- Iin 107 medtech businesses.
    [Show full text]