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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