Start-Up Quarterly Statistics, Q3 2009

01 Nov 2009

• By Deanna Kamienski

Highlights from the Q3 2009 review of start-up dealmaking: Fundraising in the biopharma, medical device, and in vitro diagnostics industries totaled $520 million, a 40% decrease from the previous quarter and a 45% drop from Q3 2008. Of the total money raised in the current quarter, 64% or $333 million went to the biopharma companies. Compared with Q2 2009, device fundraising decreased by 76% (from $465 million to $113 million) but diagnostics companies raised significantly more--going from $23 million to $74 million. In contrast to the previous quarter, which saw only one acquisition, in Q3 2009 there were four involving start-ups, all of which are focusing on neurological disorders. On the alliance front, three companies--Oscient, NovaMed, and Ikaria Holdings--signed two deals each this quarter.

In the third quarter of 2009, biopharma, medical device, and in vitro diagnostics start-ups brought in a total of $520 million, a 40% decrease from the previous quarter and a 45% drop from Q3 2008's impressive $937 million. Of the total money raised in the current quarter, 64% or $333 million went to the biopharma companies. Compared with Q2 2009, device fundraising decreased by 76% (from $465 million to $113 million) but diagnostics companies raised significantly more--going from $23 million to $74 million. (See Exhibit 1.)

Most of the biopharma dollars went to early-stage rounds. Series Bs generated the most money, with 10 companies raising a...