Successfully reported this slideshow.

Private Funding Trends Presentation - SVB

1

Share

1 of 29
1 of 29

Private Funding Trends Presentation - SVB

1

Share

Download to read offline

Private Funding Trends Presentation - SVB at OIS@AAO 2016.

Presenter:
Jonathan Norris, Managing Director


Powered by:
Healthegy

For more ophthalmology innovation
Visit us at www.ois.net

Private Funding Trends Presentation - SVB at OIS@AAO 2016.

Presenter:
Jonathan Norris, Managing Director


Powered by:
Healthegy

For more ophthalmology innovation
Visit us at www.ois.net

More Related Content

Related Books

Free with a 14 day trial from Scribd

See all

Related Audiobooks

Free with a 14 day trial from Scribd

See all

Private Funding Trends Presentation - SVB

  1. 1. Venture Healthcare – Industry Update OIS OCTOBER 2016
  2. 2.  Manage West Coast Healthcare Relationships for SVB across the SVB Platform, including  Fund of Funds (Investment as LP)  Direct Equity (Co-Investments and Rights to Invest)  Commercial Bank (Venture/Mezzanine Debt, Asset-based Debt, New Fundings)  Equity Financing Strategy for Early Stage and Venture-Backed Companies  Industry Thought Leadership Jon Norris: Managing Director, SVB Capital Jonathan Norris Managing Director, Healthcare Silicon Valley Bank Mobile 650.575.1377 jnorris@svb.com Twitter: @jonnysvb  Publications  Trends in Healthcare Investments and Exits (2016)  A Year of Dazzling Returns: 2015 Healthcare Investments and Exits (2016)  Trends in Healthcare Investments and Exits (2015)  Strong Momentum in Healthcare (2013)  First Mover Advantage (2012)  Continued Rebound (2012)  Trends in M&A (2011)  Bringing Home the Bacon (2010) Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  3. 3. Healthcare Investment/Total Venture Investment 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H 2016 Total VC Dollars ($B) $105 $41 $22 $20 $23 $23 $28 $32 $30 $20 $24 $30 $28 $30 $51 $60 $28 Biopharma 4% 9% 15% 19% 19% 17% 18% 19% 17% 19% 17% 16% 16% 15% 13% 13% 13% Device 2% 5% 8% 8% 8% 9% 10% 11% 12% 13% 11% 10% 9% 7% 5% 5% 4% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H 2016 $Billions Total VC $ % Biopharma % Device $105 Source: PricewaterhouseCoopers & SVB Proprietary Data Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  4. 4. Historical Trend Data for Device 2008 - 2Q 2016 20 40 60 80 100 120 $ $ 200 $ 400 $ 600 $ 800 $ 1,000 $ 1,200 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009 Q32009 Q42009 Q12010 Q22010 Q32010 Q42010 Q12011 Q22011 Q32011 Q42011 Q12012 Q22012 Q32012 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014 Q22014 Q32014 Q42014 Q12015 Q22015 Q32015 Q42015 Q12016 Q22016 US$m investment deals Source: PricewaterhouseCoopers Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  5. 5. Device Investment Into Venture - Consistency since 2009 Year Device $ Invested Dollars as % of Total VC 2008 $3.6 Billion 11% 2009 $2.6 Billion 13% 2010 $2.5 Billion 10% 2011 $2.9 Billion 10% 2012 $2.6 Billion 9% 2013 $2.1 Billion 7% 2014 $2.7 Billion 5% 2015 $2.8 Billion 5% 1H 2016 $1.1 Billion 4% 2016E* $2.2 Billion (Down 22%?) *Expected 2016E numbers extrapolated from 1H 2016 investment in device. Assumed 2x 1H2016 investments. Source: PricewaterhouseCoopers Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  6. 6. Capital Flow Ratio 127% 368% 207% 189% 175% 149% 141% HC $ Invested into Companies HC VC $ Fundraised Gap in Funding 0 1 2 3 4 5 6 7 8 9 10 11 2009 2010 2011 2012 2013 2014 2015 $Billions $7.5B $10.5B US Healthcare: Venture Dollars Invested and Raised Source: PricewaterhouseCoopers, Thompson Reuters, and SVB proprietary data Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  7. 7. Total Series A ($M) $1,107 $862 $1,843 $1,296 CVC Deals % / # 28% / 17 27% / 20 26% / 23 30% / 22 BIOPHARMA DEVICE Total Series A ($M) $227 $337 $92 $147 CVC Deals % / # 18% / 7 14% / 6 22% / 4 6% / 2 Ophthalmology 3 deals (all Biopharma) 2 deals (1 each in Biopharma and Device) 4 deals (2 each in Biopharma and Device) 2 deals (all Biopharma) US Venture Series A 60 75 87 74 2013 2014 2015 3Q 2016 #ofDeals 38 42 18 35 #ofDeals Source: SVB proprietary data, VentureSource, Pitchbook. *Q3 data as of 08/31/2016. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  8. 8. Most Active* Venture Investors in Device (2015 – 2Q 2016) Most Active** Venture Investors in Biopharma (2015 – 3Q* 2016) **Most active defined as top 61 investors based on new investments (duplicate investments removed) Source: Pitchbook and SVB proprietary data. *Q3 data as of 08/31/2016. 196 deals analyzed. #ofDeals 27 18 15 14 14 10 10 10 10 0 5 10 15 20 25 30 Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  9. 9. 45 17 14 17 12 7 4 5 4 4 3 10 3 3 1 5 1 1 1 1 12 3 4 3 2 2 0 10 20 30 40 50 60 70 80 Early Stage Late Stage Undesignated 72% 14% 14% Early Stage Late Stage Undesignated Most Active* Venture Investments in Device by Indication (2015-1H 2016) Most Active* Venture Investments in Biopharma by Indication (2015 - 3Q 2016) Source: Pitchbook and SVB proprietary data. *Q3 data as of 08/31/2016. 196 deals analyzed. #ofDeals : Oncology, Orphan / Rare : CardiovascularTrends: *Most active defined as top 61 investors based on new investments Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  10. 10. 7 5 4 3 Most Active* Venture Investors in Device (2015 – 2Q 2016) Most Active** Venture Investors in Device (2015 – 3Q* 2016) **Most active defined as top investors based on new investments (duplicate investments removed) Source: Pitchbook and SVB proprietary data. *Q3 data as of 08/31/2016. 270 deals analyzed. # of Deals Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  11. 11. 17 18 17 6 10 8 3 4 6 1 4 2 4 7 8 6 5 4 4 2 4 2 1 4 3 5 1 15 9 4 12 4 10 2 5 5 3 5 2 2 0 5 10 15 20 25 30 35 40 45 Early Stage Late Stage Undesignated Most Active* Venture Investments in Device by Indication (2015-1H 2016) : NIM, Cardiovascular, Surgical : Asthetics / DermTrends: #ofDealsMost Venture Investments in Device by Indication (2015 - 3Q 2016) 43% 24% 33% Early Stage Late Stage Undesignated Source: Pitchbook and SVB proprietary data. *Q3 data as of 08/31/2016. 270 deals analyzed. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  12. 12. Top 15 Crossover Investors: Investments in Biopharma Decline Rapidly 2013 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Total PRIVATE INVESTMENTS 15 68 27 46 68 22 16 13 275 MOST ACTIVE CROSSOVER INVESTORS 1H 2016 INVESTOR DEALS Deerfield Management 7 Fidelity Investments 4 Cormorant Asset Management 4 Sectoral Asset Management 3 Top 15 Crossover Investors: Adage Capital Management, Casdin Capital, Cormorant Asset Management, Deerfield Management, EcoR1 Capital, Fidelity Investments, Foresite Capital Management, Jennison Associates, Perceptive Advisors, RA Capital Management, Redmile Group, Rock Springs Capital, Sectoral Asset Management, Wellington Management, Woodford Investment Management Source: Pitchbook, press releases and SVB proprietary data. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  13. 13. $4.5 $4.1 $6.6 $4.3 $5.4 $8.0 $10.0 $7.9 $0.9 $1.1 $1.0 $1.8 $0.8 $1.0 $2.2 $2.4 $0.1 $1.5 $1.2 $2.1 $8.8 $12.1 $11.6 $3.2 0 2 4 6 8 10 12 14 16 18 20 22 24 2009 2010 2011 2012 2013 2014 2015 3Q 2016 TotalValue($Billionis) Big Exit Upfront Payments Big Exit Milestones to be Earned Pre-Money IPO Value 2016: Projected numbers will likely not keep pace with 2015 *Potential distribution calculated as 75% of Upfront Payments, 25% of Milestones, and 75% of Pre-Money IPO Value Source: Pitchbook, VentureSource, press releases, discussions with life sciences professionals and SVB proprietary data. *Q3 data as of 08/31/2016. Potential Distributions* From VC-Backed IPOs and M&A (2009 – Q3 2016) Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  14. 14. VC-Backed Biopharma Exits by Quarter 2013 – 3Q 2016 Q1 Q2 Q3 Q4 Total 2013 IPO 3 10 13 8 34 M&A 3 3 3 3 12 2014 IPO 24 12 17 13 66 M&A 3 4 6 1 14 2015 IPO 11 12 9 10 42 M&A 7 4 6 4 21 2016 IPO 7 8 5 20 M&A 5 5 2 12 Source: Pitchbook, press releases, and SVB proprietary data. *Q3 data as of 08/31/2016. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  15. 15. 1 1 5 7 3 4 2 3 4 6 3 5 4 9 2 1 2 1 6 2 1 1 0 2 4 6 8 10 12 14 16 18 20 2012 2013 2014 2015 3Q 2016 #ofBigExits VC-Backed Biopharma Exits by Stage since 2012 Source: Pitchbook, press releases, and SVB proprietary data. 2015 deals excludes one deal falling under the ‘Non-approved’ life stage category *Q3 data as of 08/31/2016. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  16. 16. Year 2012 2013 2014 2015 3Q 2016 Total Pre-Clinical 1 1 9 9 3 23 Phase I 0 8 20 9 8 45 Phase II 3 13 26 17 2 61 Phase III 6 8 6 6 5 31 Dev Stage - Veterinarian 0 2 0 0 0 2 Commercial 0 2 5 1 2 9 Total 10 34 66 42 20 43% of early stage IPOs in 2015 were Pre-Clinical or Phase I 55% of early stage IPOs in1Q-3Q 2016 were Pre-Clinical or Phase I Source: Pitchbook, press releases, and SVB proprietary data. *Q3 data as of 08/31/2016. VC-Backed Biopharma IPO’s by Stage (2012 – 3Q 2016) Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  17. 17. VC-Backed Biopharma IPOs: Median Pre-Money and Dollars Raised (2012 – 3Q 2015) 2012 2013 2014 2015 3Q 2016 # of IPOs Raised Over $100MM 1 8 44 13 1 % of IPOs Raised over $100MM 10% 24% 67% 31% 5% $61 $113 $91 $126 $54 $202 $182 $140 $193 $181 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 2012 2013 2014 2015 3Q 2016 Median $ amount (millions) Biopharma IPO $ Raised Biopharma Pre-money Source: Pitchbook, press releases, and SVB proprietary data. *Q3 data as of 08/31/2016. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  18. 18. 2008 2009 2010 2011 2012 2013 2014 2015 Q3 2016 Upfront $: Median ($M) 200 200 148 190 125 213 225 200 133 Total Deal $: Median 285 403 325 338 375 452 413 580 600 VC-Backed Biopharma Private M&A since 2008 3 11 10 13 13 9 9 12 7 6 2 4 2 2 3 5 9 5 0 2 4 6 8 10 12 14 16 18 20 22 24 2008 2009 2010 2011 2012 2013 2014 2015 3Q 2016 #ofBigExits Source: Pitchbook, press releases, and SVB proprietary data. *Q3 data as of 08/31/2016. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  19. 19. 2011-Q3’16 Number of Exits Stage: Pre-clinical / Phase I / II / III / Commercial Median Years to Exit Oncology 23 8 / 6 / 7 / 1 / 1 4.7 Neurology 14 4 / 1 / 5 / 1 / 3 4.2 Respiratory 8 - / 2 / 4 / 1 / 1 5.0 Aesthetics / Derm. 8 - / 2 / 4 / - / 2 3.2 Cardiovascular 7 1 / 2 / 1 / - / 3 5.9 Auto-Immune 5 2 / 2 / 1 / - / - 3.7 Anti-Infective 5 1 / 3 / 1 / - / - 5.6 Orphan / Rare 4 1 / 1 / 2 / - / - 1.4 Ophthalmology 3 - / - / 2 / 1 / - 4.1 VC-Backed Biopharma M&A >$50M since 2011 Pitchbook, Venture Source, press releases & SVB Proprietary Data. Median Multiple calculated at 85% of value divided by venture equity. *Q3 data as of 08/31/2016. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  20. 20. VC - Backed Device M&A >$50M VC-Backed Biopharma M&A >$50M 2011-Q3’16 Median $ Invested ($M) Median $ Up- Front ($M) Median $ Up- Front Multiple* on VC$ Median $ Total Deal ($M) Median Total Deal Multiple* on VC$ Oncology $41.0 $225 5.8x $600 10.6x Neurology $50.4 $183 3.0x $555 7.2x Respiratory $35.6 $147 3.5x $453 6.1x Aesthetics / Derm. $27.7 $90 3.2x $320 12.7x Cardiovascular $63.0 $200 4.4x $700 24.6x Auto-Immune $27.0 $225 3.5x $325 10.2x Anti-Infective $40.0 $325 9.4x $464 9.4x Orphan / Rare $43.0 $128 2.9x $253 6.6x Ophthalmology $42.0 $160 1.9x $300 6.8x Pitchbook, Venture Source, press releases & SVB Proprietary Data. Median Multiple calculated at 85% of value divided by venture equity. *Q3 data as of 08/31/2016. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  21. 21. VC-Backed Device Exits by Quarter 2013 – 3Q 2016 • Since Q2 ‘15, there have been at least 3 or more M&A device big exits every quarter Q1 Q2 Q3 Q4 Total 2013 IPO 0 0 0 2 2 M&A 1 2 6 2 12 2014 IPO 1 5 1 3 10 M&A 2 9 5 2 18 2015 IPO 3 4 3 1 11 M&A 0 4 9 4 17 2016 IPO 0 0 0 0 M&A 5 4 3 12 Source: Pitchbook, press releases, and SVB proprietary data. *Q3 data as of 08/31/2016. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  22. 22. VC-Backed Device Exits by Stage (2012 – 3Q 2016) Source: Press releases and SVB proprietary data. 2014 data for big exits excludes one Canada Commercial deal. *Q3 data as of 08/31/2016. Non-Approved CE Mark U.S. Commercial Represents # of IPOs Represents Big Exits 3 1 1 5 2 3 3 1 6 3 8 8 15 6 7 0 2 4 6 8 10 12 14 16 18 2012 2013 2014 2015 3Q 2016 #ofBigExits 1 2 7 1 2 8 1 2 Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  23. 23. VC-Backed Device Exits by Indication (2012 – 3Q 2016) Source: Press releases and SVB proprietary data. *Q3 data as of 08/31/2016. 6 1 1 2 1 4 2 3 3 3 1 7 10 7 8 2 2 1 10 2 4 6 8 10 12 14 16 18 # of deals Non-Approved CE Mark U.S. Commercial Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  24. 24. 2011-Q3’16 Number of Exits Stage: Dev/CE/US Median Years to Exit Cardiovascular 19 6/6/7 6.3 Surgical 18 1/2/15 7.2 Vascular 15 1/4/10 6.4 Orthopedics 9 0/0/9 9.2 Ophthalmology 7 2/3/2 8.2 Neuro 5 2/3/0 5.6 Imaging 4 0/0/4 11.0 Aesthetics 4 0/0/4 4.0 VC-Backed Device M&A >$50M Pitchbook, Venture Source & SVB Proprietary Data. Median Multiple calculated at 85% of value divided by venture equity. *Q3 data as of 08/31/2016. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  25. 25. VC - Backed Device M&A >$50M VC-Backed Device M&A >$50M 2011-Q3’16 Median $ Invested ($M) Median $ Up- Front ($M) Median $ Up- Front Multiple* on VC$ Median $ Total Deal ($M) Median Total Deal Multiple* on VC$ Cardiovascular $36.5 $124 2.6x $250 5.7x Surgical $36.3 $117 3.4x $180 3.7x Vascular $33.5 $135 3.2x $220 7.3x Orthopedics $53.1 $120 1.8x $130 2.1x Ophthalmology $61.8 $240 2.7x $400 4.8x Neuro $42.0 $175 2.6x $200 2.6x Imaging $68.2 $111 1.3x $111 1.3x Aesthetics $6.5 $338 14.5x $338 14.5x Pitchbook, Venture Source & SVB Proprietary Data. Median Multiple calculated at 85% of value divided by venture equity. *Q3 data as of 08/31/2016. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  26. 26. Ophthalmology #4 Indication in Device and Biopharma Exits since 2013 Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com Source: CB Insights, PitchBook, press releases and SVB proprietary data *Through August 31, 2016 In venture-backed Big Exit M&A and IPOs, Ophthalmology is in the top 5 in IPOs and M&A Overall (M&A + IPO), Ophthalmology is the #4 indication with 21 exits VC-backed Big Exit M&A and IPO by Indication 2013 – 3Q* 2016 IPO Big Exit M&A Oncology 36 Cardiovascular 18 Neurology 24 Oncology 15 Orphan/Rare 16 Neurology 12 Anti-Infective 12 Ophthalmology 10 Ophthalmology 11 Surgical 10 Cardiovascular 11 Vascular 10
  27. 27. Most Active* Venture Investors in Device (2015 – 2Q 2016) Predictions in 2016 into 2017 • Investment into venture backed healthcare companies will be close to record 2016 numbers, with Biotech leading the charge. • Fundraising down in 2016, but significant fundraising from 2014-15 means that healthcare venture industry is well funded. • Series A investment is up in all sectors. • Biotech M&A and IPOs continue to be early stage, though M&A numbers and up front dollars are slightly down. • Device M&A numbers continue to be remarkably consistent. • IPOs Market Stays Open in Biotech but Not at 2015 Pace – Potential for some Device IPOs in Q4. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com
  28. 28. Thank you.
  29. 29. Jon Norris, Managing Director, SVB Healthcare jnorris@svb.com

Editor's Notes

  • Q3 2015 – 84 deals, US$856m
    Q4 2015 – 84 deals, US$651m
    Q1 2016 – 51 deals, US$521m
    Q2 2016 – 61 deals, US$539m
  • BIG EXHIBIT
  • Ikaria?
  • Updated 8.4
  • Updated 8.3.15
  • Q1’15 Pre-Money: $95
    IPO $ Raised: $50
  • Updated 8.4
  • Increase the font
  • Increase the font
  • Ikaria?
  • updated
  • updated
  • Increase the font
  • Increase the font
  • ×