Healthcare Startups Raised $111.4bn in Total Funding, a 34% Jump Year-on-Year

Healthcare Startups Raised $111.4bn in Total Funding, a 34% Jump Year-on-Year
Healthcare Startups Raised $111.4bn in Total Funding, a 34% Jump Year-on-Year

Categories :

By citiesabc resources - Sep 28, 2020

The coronavirus pandemic put enormous pressure on the healthcare industry, forcing pharmaceutical giants and institutions to roll out clinical trials for a COVID-19 vaccine at breakneck speed. But behind the COVID-19 outbreak as the main healthcare issue in 2020, large health systems and venture capital firms continued investing millions in startups whose products could bring critical healthcare delivery innovation.

According to data presented by BuyShares, the total amount of funds healthcare startups raised over time hit $111.4bn in September, a 34% jump year-on-year.

Total Funding Amount Surged by 162% in Three Years

In 2015, healthcare startups worldwide raised $5.4bn in funding rounds, with the cumulative value of investments reaching $24.4bn that year, revealed the CrunchBase data. During the next two years, this figure surged by more than 68%, reaching $45.5bn in the fourth quarter of 2017.

Statistics show that 2018 delivered a $19.2bn of investments into healthcare startups, while the cumulative funding value rose to $64.7bn. In 2019, the total value of raised funds jumped by $24.7bn to $89.4bn, the most significant increase year-on-year.

The Crunchbase data revealed the first quarter of 2020 delivered $7.1bn worth investments into healthcare startups, a 51% increase year-on-year. Between April and June, the cumulative value of funding rose to $103.7bn and continued growing.  Statistics show the total funding amount healthcare startups raised over time surged by 162% in the last three years.

Analyzed by geography, North America represents the leading region with $72.4bn of investments in healthcare startups. The US companies raised more than 97% of that amount, with California and San Francisco as the leading hubs. Asian startups hit $25.5bn in total funding, ranking as the second-leading region globally. European healthcare startups follow with $12.8bn worth funding rounds.

Three Largest Funding Rounds in 2020 Worth Over $2bn

The CrunchBase data also revealed the three largest healthcare startup funding rounds this year hit over $2bn value.

Last month, JD Health, the healthcare unit of Chinese e-commerce giant JD.com, raised more than $830 million from Hillhouse Capital in Series B funding, the largest investment in 2020. The company announced it would use this capital to further strengthen its pharmacy supply chain capabilities and explore additional healthcare services opportunities in the broader healthcare sector.

In July, Seattle-based biotech startup Sana Biotechnology raised $700 million in initial financing that will be used to advance the company’s discovery and development programs that deliver engineered cells as a treatment for different types of diseases.

Statistics show that Lyell Immunopharma`s $493 million worth Series C funding round represents the third-largest healthcare startup investment in 2020. Last year, the San Francisco-based company joined forces with GlaxoSmithKline plc to develop new technologies to improve cell therapies for cancer patients.

Tags

To Reach 100-Plus Innovators: Paris Blockchain Week and Google Cloud Launch Web3 Startup Competition

To Reach 100-Plus Innovators: Paris Blockchain Week and Google Cloud Launch Web3 Startup Competition

Feb 03, 2023
Major Web3 Industry Trends That Businesses Should Be Aware Of

Major Web3 Industry Trends That Businesses Should Be Aware Of

Feb 03, 2023
Digital Twins and BIM To Revolutionise The Construction Industry: Dinis Guarda Interviews Former Digital Transformation And BIM Manager At Roads And Transport Authority (RTA), Dubai, Wajdi Mereb

Digital Twins and BIM To Revolutionise The Construction Industry: Dinis Guarda Interviews Former Digital Transformation And BIM Manager At Roads And Transport Authority (RTA), Dubai, Wajdi Mereb

Feb 01, 2023
The Next Step in Democratizing Web3: ConsenSys Launches MetaMask Learn

The Next Step in Democratizing Web3: ConsenSys Launches MetaMask Learn

Jan 31, 2023
From VR To The Metaverse: This is How New Tech Is Improving Our Healthcare

From VR To The Metaverse: This is How New Tech Is Improving Our Healthcare

Jan 27, 2023
Which Maryland City Has The Least and Most Expensive Car Insurance?

Which Maryland City Has The Least and Most Expensive Car Insurance?

Jan 26, 2023
Why Paris Is A Hub For Talents And Development In The Blockchain Industry

Why Paris Is A Hub For Talents And Development In The Blockchain Industry

Jan 26, 2023
An Effective Education In Medicine With AR, VR, And The Metaverse: Dinis Guarda Interviews Danny Goel, Founder Of PrecisionOS

An Effective Education In Medicine With AR, VR, And The Metaverse: Dinis Guarda Interviews Danny Goel, Founder Of PrecisionOS

Jan 25, 2023
Innovation Indices And Its Impact On Global Investment

Innovation Indices And Its Impact On Global Investment

Jan 24, 2023
Sustainability, SDGs and Tech Initiatives at the WEF in Davos

Sustainability, SDGs and Tech Initiatives at the WEF in Davos

Jan 20, 2023