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Venture capital: Life sciences/ biotechnology investments

VC-facts has published the ‘Life Sciences Venture Capital Yearbook’ for the first time 2007. It shows that the total volume of financing in the life sciences amounts to 438.65 million euros.

The industry information service VC-facts registered a total of 278 German venture capital financings with a total volume of financing of 1.041 billion euros. This equates to an average of 3.74 million euros per investment. This represents an increase on 2006 (223 deals with a total financing volume of 949.14 million euros).
The new Life Sciences Venture Capital Yearbook 2007 details each of the 63 life sciences investments. (Photograph: VC-facts)
As in the past three years, the major portion of invested venture capital was allotted to the life science industry. Life science companies received 438.65 million euros, i.e. 42.13% of the total volume of investment. The total volume of financing is distributed among 63 German companies, whereby an average of 7.72 million euros was invested in each company. This value is significantly higher than the mean value of 3.74 million euros of the market as a whole.

The sector allocation within the life science industry clearly shows that about 2/3 of the total volume of financing were allotted to the segment ‘therapy’, and the segments ‘medical technology’, ‘proteins, enzymes’ and ‘diagnostics’ each received about 10% of the invested capital.

All further details regarding each of the 63 life science investments, such as the participating investors, consulting companies and contact information, can be obtained from the recently published LIFE SCIENCES VENTURE CAPITAL YEARBOOK 2007.

Investors are largely business angels and private investors

Despite the continuing rise in investments and the higher financing volume in the area of venture capital, it must be pointed out that relatively few new ‘players’ have appeared as investors over the last few years. The positive development has instead been supported predominantly by business angels and private investors. This is especially true in the field of life sciences where the commitment of billionaire Dietmar Hopp and the Strüngmann brothers is a shining example. An additional reason for this development is the fact that many investors remain active in the domestic market and investments in foreign markets are rather infrequent.

For Germany it remains to be hoped that in future more foreign investors commit themselves to venture capital, thus transferring the already visible positive development in private equity transactions, in which a majority of established foreign investment companies are active, to early stage financing.

Source: VC-facts - 29.01.2008

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Website address: https://www.gesundheitsindustrie-bw.de/en/article/press-release/venture-capital-life-sciences-biotechnology-investments