Venture capital funding for healthcare services fell in the second quarter as more funds flowed to other parts of the economy, including other sectors of healthcare. However, total healthcare funding, including biotechnology and medical devices, still lagged behind 2002 levels. Some 116 healthcare companies received $1.1 billion, according to Growthink Research, Venice, Calif. Biotechnology and pharmaceutical firms received 60.5% of the funds, medical devices 31.8%, medical software and services 6%, and diagnostic/patient care 1.7%. Total healthcare venture capital funding was up $50 million from first quarter, although six fewer firms received funds, according to Growthink. In the second quarter of 2002, Growthink reported 162 healthcare deals worth nearly $2.1 billion. Separately, the MoneyTree Survey by PricewaterhouseCoopers, Thomson Financial and the National Venture Capital Association showed biotechnology funding up 14% from the first quarter, to $639 million, and medical-device funding up 45%, to $562.9 billion. Funding for healthcare services fell 59% to $30 million, the fourth consecutive quarterly drop after reaching $130.2 million in the second quarter of 2002. -- by Mary Chris Jaklevic
Healthcare venture capital funding down: reports
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.