A new survey of the venture capital field from Ernst & Young and Dow Jones VentureOne points to big gains for the healthcare industry, including biotech, pharma and medical devices. Biotech and pharma drew $4.72 billion in venture funds last year, a 12.5 percent increase over 2005. Medical devices, meanwhile, saw investment levels jump 20 percent to $2.63 billion. Overall investing jumped to $25.75 billion, the highest level since 2001.
"I think 2006 proved that the U.S. venture capital industry has entered a new cycle with many investors renewing their commitment to the entrepreneurial spirit by focusing attention and capital on companies that affect our health, the way we communicate, and the environment," said Stephen Harmston, director of global research for VentureOne. "The data also shows that investors are recognizing the economic reality for startups today and are willing to sustain them with round sizes that are at the highest levels in six years."
For more on the VC numbers:
- check out the release