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January 12, 2023 | Tom Ballard

Healthcare venture capital fundraising, investment remained strong in 2022

2022 was the second best year on record.

SVB, the parent of Silicon Valley Bank, has released its 12th annual “Healthcare Investments and Exits Report” which shows venture capital fundraising and investment persisted in 2022, remaining at highs second only to 2021’s record-setting numbers.

While fundraising activity slowed down in the second half of 2022, a record $50 billion of investible capital raised since 2021 indicates significant potential for future healthcare investment activity. While total healthcare company investment slowed in 2022 – with successive declines each quarter in both deals and dollars, it was still the second largest year in healthcare investment on record.

“Many investors were focused on helping existing portfolio companies extend runway and achieve milestones last year,” said Jonathan Norris, Managing Director at Silicon Valley Bank and author of the annual report. “Investments were primarily focused on insider rounds while investors sought to buy time during market uncertainty.”

The report analyzes and predicts trends for venture capital investing, fundraising and exits that reflect the biopharma, medical device, diagnostics/tools, and healthtech sectors in the U.S. and Europe.

“Looking ahead to 2023, while there is still uncertainty in the private investment landscape, the strongest companies will get funded,” Norris said. Among his predictions is that venture healthcare fundraising will decline to about $15 billion in 2023, as most firms recently raised new funds and the pace of investment to be slower than 2021.

Click here to read the SVB news release and the other findings and predictions.