Jump To

Healthcare Industry Trends
2024 Mid-Year Report 

Download now

Key Takeaways

Our Healthcare Investments & Exits Mid-Year Report for 2024 examines the impact of fundraising, investment and exit trends on the VC-backed healthcare ecosystem.

55 Biopharma companies have landed deals of $100M and above so far this year.

2024 is on track to set the record for deals of this size within the sector.

89% of US VC funds with a healthcare focus have hit fundraising targets in the first half of 2024.

This level of success outstrips all prior years except 2022.

More than 1 in 4 US healthcare companies that closed a venture capital deal of at least $15M reported a flat or down round in 2024.

This marks the highest proportion of down rounds in recent history.

The data

For nearly 20 years, SVB has tracked trends in healthcare venture funding. In our latest edition of the Healthcare Investments & Exits report, we leverage our proprietary data to explore trends and offer expert commentary around fundraising, investment, M&As and IPOs in the healthcare market, as well as sector analysis for healthtech, biopharma, medical devices and diagnostics. We find that, despite strong headwinds, fundraising has remained strong so far this year, with a focus on quality over quantity.

HEALTHCARE VALUATIONS

Valuations are under the microscope

The exuberance of 2021 has given way to an era of unprecedented scrutiny for valuations, with at least 28% of deals in the US reporting down or flat rounds — the highest level seen in recent history.

With many of the unicorns formed in 2020 and 2021 yet to come back to market to raise another round, we expect to see more valuation resets ahead.

Healthcare 2024 Landing Page Charts v 3 Chart 1 Down Rounds Creeping Up

Note: The methodology for this analysis has changed from prior reports. Up rounds defined as deals where the pre-money valuation is higher than the prior deal’s post-money valuation. Only deals with a reported deal size are considered for this analysis. 

Source: PitchBook Data, Inc. and SVB proprietary data and analysis

Healthcare 2024 Landing Page Charts v 3 Chart 2 VC Dollars and Deals by Healthcare Sectors

Source: PitchBook Data Inc. and SVB proprietary data and analysis.

HEALTHCARE INVESTMENTS

Investors prioritize quality over quantity

Extended diligence timelines and more conservative deals are making investors more confident. That confidence is translating into continued steady investment growth in 2024.

This investment activity marks the strongest start to a year outside of the pandemic investment boom of 2021 and 2022, laying the foundation for a healthy private market.

BIOPHARMA DEALS

Mega deals dominate in biopharma

With 55 deals $100M and above in the first half of 2024, biopharma is on track for a record year.

The other healthcare subsectors appear to have settled into a new normal for large dealmaking after sustaining major drops from their 2021 peaks.

Healthcare 2024 Landing Page Charts v 4 Chart 4 Biopharma Mega Deals

Note: Deals $100M and above are considered mega deals. 

Source: PitchBook Data, Inc. and SVB proprietary data and analysis 

SVB’s Global Life Science and Healthcare Practice

Discover how SVB supports healthcare innovators and investors. 

Explore other SVB reports

Healthcare 225 x 121
The AI-Powered Healthcare Experience
Learn more
102085 WHR Cross Promo Thumbnails 225 z 121
Innovation in Women’s Health 2023
Learn more
102284 Images Resizing 225 x 125
The Future of Healthtech
Learn more
SOTM H 12024 225 X 121
State of the Markets
Learn more

Written and researched by SVB experts

Our deep relationships with entrepreneurs and investors inform our insights and give us a vantage point unlike any other bank.

Jackie Spencer Headshot Jackie Spencer Head of US Relationship Management, Life Science and Healthcare
Raysa Bousleiman Headshot Raysa Bousleiman Vice President, Venture Capital Relationship Management, Life Science and Healthcare
Kale Frank Headshot Kale Frank Managing Director, Life Science and Healthcare
Timot Lamarre Headshot Timot Lamarre Researcher
Alex Lennox-Miller Headshot Alex Lennox-Miller Lead Research Analyst, Market Insights
The views expressed in this report are solely those of the authors and do not necessarily reflect the views of Silicon Valley Bank, a division of First-Citizens Bank.
 
This material, including without limitation to the statistical information herein, is provided for informational purposes only. The material is based in part on information from third-party sources that we believe to be reliable but which has not been independently verified by us, and, as such, we do not represent the information is accurate or complete. The information should not be viewed as tax, accounting, investment, legal or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment, or to engage in any other transaction.
 
All non-SVB named companies listed throughout this document, as represented with the various statistical, thoughts, analysis and insights shared in this document, are independent third parties and are not affiliated with Silicon Valley Bank or First Citizens Bank & Trust Company. All third-party trademarks, logos, and brand names are the property of their respective owners and are herein used for informational purposes only. Any predictions are based on subjective assessments and assumptions. Accordingly, any predictions, projections or analysis should not be viewed as factual and should not be relied upon as an accurate prediction of future results.