Although the stream of venture capital dollars decreased for most industries from the first to second quarter of 2002, Growthink Research reports that investments in healthcare companies increased. The number of companies funded rose from 153 to 162, and the average deal's size increased from $10.4 million to $12.7 million. All told, pharma, biotech, medical device, and medical software companies raised more than $2 billion, or 32.9 percent of the total venture dollars invested in the United States. The chart below describes the allocation of funds within the industry.
Healthcare Funding by Segment
Eight of the top ten companies that received the most venture cap dollars in 2Q 2002 were biotech or pharma. Further analysis shows that San Francisco Bay Area companies led the nation in raising capital, followed by companies in New England, Southern California, and the Northeast.