Venture Healthcare Market Entering Important Phase as Companies Must Secure New Financing or Face Tough Consequences

Business Wire07-17

HSBC’s Venture Healthcare Report: Shake It Off? explores whether companies can, in the words of Taylor Swift, "shake it off" and rebound from what has been a difficult financing and exit market 2023 ...

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explores whether companies can, in the words of Taylor Swift, \"shake it off\" and rebound from what has been a difficult financing and exit market\n\n2023 ...</p>\n\n<a href=\"https://finance.yahoo.com/news/venture-healthcare-market-entering-important-130000514.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://finance.yahoo.com/news/venture-healthcare-market-entering-important-130000514.html","article_id":"2452265154","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2452265154","pubTimestamp":1721221200,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"HSBC’s Venture Healthcare Report: Shake It Off?explores whether companies can, in the words of Taylor Swift, \"shake it off\" and rebound from what has been a difficult financing and exit market. 2023 was a year of triage as venture healthcare companies closed insider rounds and focused on existing portfolios, leading to a slower investment pace. The first half of 2024 did have green shoots with increased investment across every sector, with more new investor-led financings, many at up-rounds. Companies on dwindling on insider-round cash will need to find new lead investors or consider consolidation and/or shutdown. NEW YORK, July 17, 2024----The downturn in the venture healthcare market has extended into 2024, yet many healthcare companies still secured new investment rounds at robust step-up valuations, with potential M&A and IPO opportunities, according to HSBC’s Venture Healthcare Report: Shake It Off?","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","BK4137":"综合支持服务","PU6D.SI":"HSBC ADR 10","BK4588":"碎股","HSBC":"汇丰","BK4521":"英国银行股","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","BK4207":"综合性银行","HCSG":"医疗保健服务"},"translate_title":"风险医疗保健市场进入重要阶段，公司必须获得新融资或面临严峻后果","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HCSG":1,"HSBC":0.9,"PU6D.SI":0.9},"content_text":"HSBC’s Venture Healthcare Report: Shake It Off? explores whether companies can, in the words of Taylor Swift, \"shake it off\" and rebound from what has been a difficult financing and exit market\n\n2023 was a year of triage as venture healthcare companies closed insider rounds and focused on existing portfolios, leading to a slower investment pace\nThe first half of 2024 did have green shoots with increased investment across every sector, with more new investor-led financings, many at up-rounds\nCompanies on dwindling on insider-round cash will need to find new lead investors or consider consolidation and/or shutdown\n\nNEW YORK, July 17, 2024--(BUSINESS WIRE)--The downturn in the venture healthcare market has extended into 2024, yet many healthcare companies still secured new investment rounds at robust step-up valuations, with potential M&A and IPO opportunities, according to HSBC’s Venture Healthcare Report: Shake It Off? Conversely, companies with dwindling insider round cash will need to find new lead investors or consider consolidation and/or shutdown.\n\"Some companies continue to raise large rounds even in the down market, but the key question in 2024 is whether the prevalent insider rounds from 2022 and 2023 will provide enough runway for companies to reach a value-creation event that justifies new investment,\" said Lead Author and Managing Director Jonathan Norris. \"Most VCs possess substantial new capital available for new investments, and growth investors have become active once again.\"\nBiopharma\nHelped by opportunistic IPOs and a strong private M&A market, biopharma was the bright spot for investment dollars in 1H 2024. Investment doubled 2023 first-financing investment pace and was up 35% overall. Digging deeper, while dollars are up, the number of deals in first-financing actually declined, meaning fewer deals got more money. Many of these deals were venture spin-outs or led by management teams just off successful exits. Overall, there were 51 $100M+ biopharma financings in 1H 2024, with thirty adding a new crossover investor to their syndicate. Southern California emerged as the leader in $100M+ deals at 12, beating Massachusetts (11 deals) and Northern California (9). \nHealthtech\nIn 2023, Healthtech investments significantly declined. The trend reversed in 1H 2024, with deal activity rising each quarter. The high volume of insider bridges and round extensions decreased as investors completed their triage and started to rebuild their portfolio by funding new deals. Although investments took longer to finalize, Healthtech experienced a surge in earlier-stage deals, where valuation overhang is less problematic. For later-stage financing, the growth at all costs approach of previous years has evolved. Companies that secured new investors in 1H 2024 were largely ones that demonstrated additional growth potential, adopted capital-efficient models, and significantly reduced burn.\nMedical Devices\nMed device continued its stable pace of investment, however, there was a surge in first-financing deals and dollars in 2Q 2024, led by strong venture capital syndicates and corporate support. We also noted more PMA focused early-stage investment, especially in neurology. Pivotal trial funding and commercialization for 510(k) cleared products continued to find a combination of VC, growth, crossovers and corporates. Med device had the most down-rounds in 2023, especially in Series B and later rounds, but in 1H 2024 median step-ups for later-stage deals remained above 1x while median pre-money valuations increased across the board. Stable investment, plus good M&A in 2023, positioned med device for strong M&A in 2024, but so far private M&A has fallen flat, with just two notable private M&A deals. \nDX/Tools\nDx/tools first-financing investment continued its 2H 2023 slide in 1H 2024, down significantly from the previous three years. Investors felt the pressure of a closed IPO market and the fear of finding a series B investor that can bridge to the growth round. However, companies that got to initial commercialization have found that growth investors have come back, participating in six of the highest valued financings in 1H 2024. Valuations for early stage have remained strong, however companies with heady valuations from 2020-2021 are finding flat or down rounds. Private M&A continues to falter. So far in 2024, we have noted just two private M&A deals over $50M upfront.\nThe HSBC Venture Healthcare Report was written and produced by HSBC Innovation Banking’s Life Science and Healthcare Team, which serves the innovation economy by providing products and solutions to early and growth-stage companies.\n\"The first half of 2024 provided real glimmers of hope with increased investment across every sector and numerous investor-led financings,\" said Katherine Andersen, Head of Life Science and Healthcare, HSBC Innovation Banking. \"Our mid-year report takes a deep dive into investment and exit activity, supported by our team’s deep-sector expertise, historical perspectives and data-informed predictions. We are committed to the life science and healthcare ecosystem globally and best serving our clients with our industry knowledge and the strength and stability of HSBC’s global platform.\"\nHSBC Innovation Banking in the U.S. includes a team of industry veterans and dedicated bankers with deep sector expertise assembled across the country. HSBC Innovation Banking also has teams in the UK, Tel Aviv, and Hong Kong to deliver a globally-connected, specialized banking expertise to support a broad range of innovation businesses and their investors.\nAbout HSBC\nHSBC Holdings plc\nHSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,0001bn at 31 March 2024, HSBC is one of the world’s largest banking and financial services organisations.\nHSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves customers through Wealth and Personal Banking, Commercial Banking, Private Banking, Global Banking, and Markets and Securities Services. Deposit products are offered by HSBC Bank USA, N.A., Member FDIC. It operates Wealth Centers in: California; Washington, D.C.; Florida; New Jersey; New York; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc.\nFor more information, visit: HSBC in the USA\nDISCLAIMER\nThis material has been prepared and provided to you by members of the Commercial Corporate Banking business of HSBC Bank USA, N.A. (\"HBUS\" or \"we\"). HSBC Innovation Banking is a business division with services provided in the United States by HBUS.\nInformation is for discussion purposes only. We will not be liable for any liabilities arising under or in connection with the use of, or any reliance on, this document or the information contained within it. Materials have been prepared without regard to your particular need, investment objectives, financial situation, or means.\nWe do not provide tax, accounting, or legal advice. Accordingly, you should seek advice based on your particular circumstances from your independent advisors.\nAny information contained in this material is not and should not be regarded as investment research, debt research, or derivatives research for the purposes of the rules of the Financial Conduct Authority, the SEC, FINRA, the CFTC or any other relevant regulatory body. It has not been prepared in accordance with regulatory requirements to promote the independence of investment research. Any opinions in this material are the opinions of the author and may be changed at any time without notice. Opinions expressed in this material may differ from the opinions expressed by other divisions of the HSBC Group, including its research department and corresponding research reports.\nView source version on businesswire.com: https://www.businesswire.com/news/home/20240717918840/en/\nContacts\nMedia enquiries to: Matt KozarVice President, External Communicationsmatt.kozar@us.hsbc.com","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.28.3","shortVersion":"4.28.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2452265154"}