Start-Up Quarterly Statistics, Q2 2010

In the second quarter of 2010, biopharma, medical device, and in vitro diagnostics start-ups brought in a total of $606 million, an 83% hike from the previous quarter when only $331 million was raised. In fact, fundraising was up across all industries compared with Q1 – $343 million for biopharmaceutical companies (a 48% jump), $102 million for device start-ups (a 28% increase), and $161 million in the diagnostics segment (over eight times more than the first quarter). ( See Exhibit 1.) However, compared with the same period a year ago, 2010 Q2 financings fell short. Start-ups in the second quarter of 2009 generated $864 million, which was 30% more than in the second quarter of 2010. And more than half of that money ($465 million) went to the medical device sector.

Four infectious disease-focused companies garnered $130.6 million (38%) of the total biopharma money during Q2. ( See Exhibit 2.) One...