For a succinct analysis of 1H 2024 venture investment and exit activity in life sciences and health care, take a look at HSBC’s Venture Healthcare Report, Shake it off: HSBC Innovation Banking Analysis, 1H 2024. Lead author Jonathan Norris and his team analyze early stage, venture deals, private M&A and IPO activity in Healthtech, Med Device, Biopharma, and Dx/Tools, in both the United States and Europe. The Report also provides a deep dive into growth and investment in computational biology.
Several key findings of the Report are:
- 1H 2024 investments in Healthtech reversed the 2023 decline with deal activity rising each quarter. The sector also experienced a surge in earlier-stage deals.
- Med device investments are reported to remain stable in large part to an increase in first-financing deals and dollars in 2Q 2024. An increase in early-stage investments in deals requiring robust clinical trials, particularly in neurology.
- For Biopharma, the Report highlights exists and a strong M&A market for growth in the sector. Investment in Biopharma reportedly increased by 35%, and there were 51 private deals exceeding $100 million.
- Dx/Tools sector experienced a decline in first-financing deals. A resurgence of growth investors for companies reaching commercialization provided a bright spot for this sector. Early-stage valuations are reported to remain strong but companies with “lofty” valuations from 2020-2021 experienced down or flat rounds.
The Report summarizes that 1H 2024 experienced increased investment across every analyzed sector with numerous investor-led financings. IPO interest increased in Biopharma as well as high deal-value private M&A.
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