San Diego Business Journal

Report: Life Sciences Venture Capital Soars 45 Percent in Q4

Wednesday, February 15, 2012

Companies in San Diego’s biotechnology and medical device industries continued to receive the largest share of local venture capital during the fourth quarter of 2011, according to PricewaterhouseCoopers MoneyTree Survey, conducted in partnership with the National Venture Capital Association.

San Diego’s life sciences sector ended the year maintaining its lead position as the No. 1 industry sector for investment in the region, with $193 million invested in the fourth quarter, up 45 percent from $133 million in the same period of 2010. Life sciences accounted for 72 percent of all local funds invested.

Looking at the full-year 2011 figures, venture capitalists invested $829 million in 104 deals in the San Diego region, a 17 percent decrease in the number of deals and a 5 percent decrease in dollars invested in the prior year, PricewaterhouseCoopers said.

The life sciences sector captured 64 percent, or $534 million, of total dollars and 66 percent — or 69 —of 104 local deals. That’s a 3 percent drop in total dollars invested in life sciences locally from 2010 and a 10 percent decrease in deals.

Still, San Diego life science outpaces the sector nationally. For all of the U.S., life sciences captured 27 percent of total dollars for 2011 and 21 percent of total deals.

The software sector received the second-largest amount of venture capital in San Diego during 2011, with $111 million going toward 12 deals. Next is the industrial/energy sector with $78 million going into 4 deals.

Nationally, software continued as the single largest investment sector for the year, with dollars rising 38 percent from 2010 to $6.7 billion in 2011, according to the report.

— Kelly Quigley