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.