Personalized Medicine May Need Deeper Pockets

Perhaps no other investment theme sparks as much enthusiasm from healthcare investors as personalized medicine. Combining advances in computer processing with breakthroughs in gene sequencing and analysis, the sector offers sophisticated diagnostics that will determine not just an individual’s risk profile for a particular disease – but the optimal personalized therapy to treat it. Naturally, […]

2010 Biggest Year for M&A Exits Since — Really? — 1985

Were you sniffing about the economy last year? You must have been among the seemingly select few who didn’t sell their startup in 2010. According to new exit data published by peHUB parent Thomson Reuters and the National Venture Capital Association, last year saw more venture-backed M&A exits since people began recording this kind of thing in 1985. According to their findings, 420 deals were sewn up last year, roughly 18 percent of them IT-based.

A notoriously slow period of deal-making, even 2010′s fourth quarter was pretty good for M&A, with 88 venture-backed M&A deals reported as of December 31. Combined, the average disclosed deal value in the fourth quarter was $157.7 million, with HealthSpring’s acquisition of Bravo Health winning biggest venture-backed deal in the quarter. (It was apparently a win for investors, too. Bravo Health sold for $545 million. Backers including New Enterprise Associates and DLJ Merchant Banking Partners had sunk $157 million into the healthcare services company since its 1996 founding.)

VC-Backed IPO Market Weakens In Q3, But M&A Is On Fire

The IPO market is on the mend, but the revival is nothing to crow about. There were 14 venture-backed IPOs during the third quarter, down slightly from 17 in the second, according to data from the National Venture Capital Association and Thomson Reuters (publisher of this blog). While the decrease isn’t alarming, the bigger picture […]

NVCA Forms Group To Advocate For Life Sciences Policies And Regulations

tional Venture Capital Association formed Medical Innovation and Competitiveness (MedIC) Coalition. This is an alliance comprised of both venture capital firms and their life sciences portfolio companies. The MedIC Coalition will lobby for policies and regulations that advance U.S. medical innovation and protect the country’s global leadership position in the life sciences industry.


Latest VC Performance Data is a Mixed Bag

The NVCA and Cambridge Associates today released new VC performance data (through March 31), showing improved short-term returns but continued weakening of 10-year returns. Five-year returns experienced a modest bump, after dropping the last time around.

Overall, 10-year mean VC returns stand at -3.7%, compared to 2.3% for the DJIA and -6.3% for the Nasdaq over the same time period. Five-year returns for VC come in at 4.9%, compared to 3.3% for the DJIA and 3.7% for the Nasdaq. One-year returns (for whatever they’re worth) for VC was 6.5%, compared to 49.6% for the DJIA and 56.9% for the Nasdaq.

You can download all the relevant data after the jump…

Quarterly VC Investment Activity Way Up… But Still Way Down

Earlier today, the National Venture Capital Association and PricewaterhouseCoopers released investment activity results for the second quarter of the year. The results? VCs invested $6.5 billion in 906 deals — a 34 percent increase in capital and a 22 percent increase in the number of deals compared with the first quarter of the year. It’s […]

U.S. Venture Capitalists Expect Shrinkage

The NVCA and Deloitte today released results of a global VC sentiment survey, which measured opinions of more than 500 global venture capitalists.

Not surprisingly, 90% of U.S. VCs expected to see the number of firms to shrink over the next five years, while most of those in China, India and Brazil expect growth.

Among cited problems in the U.S. were difficulties in achieving successful exits (88%), unfavorable tax policies (59%) and unstable regulatory policy (53%). On the upside, most lauded government-funded R&D efforts and an “improving entrepreneurial environment.”


New VC Fund Performance Data: Short-Term Gains, Long-Term Losses

Cambridge Associates and the National Venture Capital Association today released new VC fund performance data, through the end of Q4 2009.

I haven’t had a chance to examine all of it yet, except to say that short-term performance improved, but 5-year and 10-year performance sagged. Not surprising on that last part, now that 10-year figures no longer include 1999 (and, as such, have moved into negative territory).

Plan to have a bit more on this later this morning. For now, here is the press release and the benchmark report.

NVCA Elects New Chair, Directors

Kate Mitchell, a managing partner of Scale Venture Partners, has been elected chair of the National Venture Capital Association’s board of directors. She succeeds Terry McGuire of Polaris Venture Partners. Also joining the board in director capacities are Bruce Evans of Summit Partners, Norm Fogelsong of Institutional Venture Partners, Robert Nelsen of ARCH Venture Partners, Scott Sandell of New Enterprise Associates and Theresia Gouw Ranzetta of Accel Partners.

Defining “Venture Capital”

NVCA president Mark Heesen gave a “state of the VC industry” talk in Chapel Hill last Friday, and included discussion of Chris Dodd’s financial reform.

Specifically, Heesen said he was heartened that the proposal clearly distinguished between “venture capital” and “private equity.”

As we’ve discussed before, however, the Dodd Bill doesn’t actually define either asset class – instead kicking that responsibility over to the SEC. It’s a tricky job, since hybrid firms would almost certainly try to game the nomenclature, in order to “become” whichever type of firm is less regulated. Moreover, enforcement of a firm’s adherence to definitional guidelines would be difficult without all firms agreeing to open up their portfolios to federal scrutiny.

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