IBJNews

'12 worst year for life sciences since 1990s

Back to TopCommentsE-mailPrintBookmark and Share

To understand why Indiana’s life sciences entrepreneurs are frustrated with the flow of venture capital, look no further than this statistic from a recent PricewaterhouseCoopers report: 2012 was the slowest year for first-time life sciences investment since 1995.

Nationwide, venture capital deals for life sciences companies totaled 779 last year, down 7 percent from 2011. Total investment came to $6.6 billion, a 14-percent decline from the year before. That was the lowest level of life sciences investment since 1998.

Indiana generally followed those trends, with life sciences deals falling to five in 2012 from six the year before. Total life sciences investment in the state fell 11 percent, to $24.2 million.

“As the number of new funds being raised continues to shrink, venture capitalists are being more discriminating with where they’re willing to place new bets,” Tracy T. Lefteroff, global managing partner of the venture capital practice at Pricewaterhouse, said in a report issued this month. “At the same time, they’re holding on to reserves to continue to support the companies already in their portfolio. Both factors are taking a toll on the amount of capital available for young startups, which is reflected in a 38-percent drop in the number of seed-stage companies receiving VC dollars in 2012.” 

Steve Hourigan, president of Elevate Ventures in Indianapolis, said those trends have made it nearly impossible for his organization to find co-investment partners on early-stage life sciences companies.

Elevate manages the Indiana 21st Century Research & Technology Fund on contract with the state. The organization has been criticized by life sciences entrepreneurs for backing away from life sciences companies in favor of IT and other kinds of businesses.

Indiana continues to run significantly behind its Midwestern neighbors in total life sciences venture capital raised.

Minnesota, typically the Midwest’s behemoth for life sciences companies, recorded 14 deals last year for a total of $138.9 million. Those totals were well below the state’s 2011 performance, when 28 companies attracted $220.8 million in life sciences venture capital.

The number of deals also slipped in Ohio, to 31 last year from 35 the year before. But total life sciences venture capital shot up 97 percent to $181.9 million.

Michigan also saw big gains, with 27 companies attracting $97.7 million last year, up from 11 deals the previous year that attracted $27.9 million.

In Illinois, the number of deals dropped to 10 last year from 15 the previous year. But those 10 deals brought in $165.8 million, a 17-percent increase from 2011.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. OK Larry, let's sign Lance, shore up the PG and let's get to the finals.

  2. A couple of issues need some clarification especially since my name was on the list. I am not sure how this information was obtained and from where. For me, the amount was incorrect to begin with and the money does not come to me personally. I am guessing that the names listed are the Principal Investigators (individual responsible for the conduct of the trail) for the different pharmaceutical trials and not the entity which receives the checks. In my case, I participate in Phase II and Phase III trials which are required for new drug development. Your article should differentiate the amount of money received for consulting, for speaking fees, and for conduct of a clinical trial for new drug development. The lumping of all of these categories may give the reader a false impression of physicians just trying to get rich. The Sunshine Law may help to differentiate these categories in the future. The public should be aware that the Clinical Trial Industry could be a real economic driver for Indiana since these revenues supports jobs and new job creation. Nationally, this account for 10-20 billion which our State is missing out on to a large degree. Yes, new drug and technology development has gotten most of the attention (e.g. CTSI, BioCrossroads, etc.) However, serious money is being left on the table by not participating in the clinical trials to get those new drugs and medical devices on the market!!!! I guess that this is not sexy enough for academia.

  3. The address given for the Goldfish Swim Club is the Ace Hardware, is it closing?

  4. Out of state management and ownership. If Kite controlled it, everything would be leased. Of course, due to the roundabout, there is limited access to the south side of 116th now also. Just have to go down to the light.

  5. Hey smudge, You're opposed to arresting people for minor crimes? Sounds great! We should only focus on murders and such, right? Let's stand around and wait until someone shoots someone before we act. Whatever we do, we should never question anyone, frisk anyone, or arrest anyone unless they are actively engaged in shooting or stabbing. Very sound!

ADVERTISEMENT