The A-List: 2009's Trend-Shaping Series A Financings

The question many venture investors were asking themselves throughout 2009 seems to be, "is it safe to come out yet?" And that cautious approach to investing embraced by many VCs has translated into a significant dip in Series As. Still, START-UP has identified a baker's dozen to keep an eye on in 2010 and beyond. (See Exhibit 1.)

There were 60 new Series A investments in biopharma firms in 2009, down sharply from 2008 and 2007, which each boasted more than 80 deals. The total value of all biopharma Series As fell by about one third, to about $870 million, although the average round size continued to hover around $15 million. (See Exhibit 2.) Meanwhile, illustrating VCs' priorities during uncertain times, at least a dozen biopharma companies that had raised A rounds prior to 2009 added to those rounds. If in 2008 flat rounds were the new up, in 2009 second tranches were the new flat rounds