SVB's crystal ball points to big money biotech IPOs, downshift in the torrid pace of venture investing
It was a bang-up year for biopharmas in need of cash. Investors closed enormous funds in 2017, IPOs rolled out at a steady pace, and venture capital dollars flowed into companies in record quantities.
Sunny days are ahead for both the IPO and M&A markets, according to a Silicon Valley Bank report, but venture dollars may slow down in 2018.
The bank estimates investments in biotech and pharma hit a record in 2017, with 548 companies picking up a projected $10.5 billion in collective investment money during the year. Back in 2013, with nearly the same number of deals, companies only brought in $5.2 billion total. This indicates the year saw much bigger rounds, of course. Just in Q4, SVB counted several mega-rounds, with Cullinan Oncology, Arcus Biosciences, and Allakos each raising over $100 million.
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