Healthcare startups are winning the attention of more venture capitalists and securing more cash, according to a new report from Healthcare Corporate Finance News.
Healthcare-related deals increased to $2.45 billion in the third quarter, the HCFN report noted. That’s an increase of 14 percent over the same quarter in 2006.
The number of deals also increased 10 percent to 121.
“In recent months, an abundance of capital available to health care companies, coupled with effective exit opportunities in the [merger and acquisition] market, has been stimulating activity in the venture capital market, while the public market continues to provide liquidity events for shareholders,” said Stephen Monroe, senior editor at HCFN.
Medical device firms led the way with 34 deals worth $623 million.
Services and related firms landed eight deals and $503 million.
Biopharmaceutical companies made 20 deals worth $473 million.
Pharmaceutical firms were next with 21 deals reporting $391 million.
Biotechnology firms, meanwhile, secured $358 million in 21 deals.
And “e-health” startups made 12 deals totaling $106 million.