Venture Capital Healthcare Investment in the BRIC Nations - October 2013

by Joel Coulson

  • 24 Oct 2013
  • PE

Preqin’s Venture Deals Analyst shows that from January 2008 – 2013 YTD, there have been 219 deals in the healthcare sector, with an aggregate value of $1.8bn, accounting for 8% of the overall number and 7% of the aggregate value of venture capital deals in the BRIC region in this period.

When taking a closer look at the data, healthcare is the fifth most active industry in terms of numbers of venture capital investments across the six year span. Across the period, the internet sector received 32% of all venture capital investments, followed by telecoms with 11%, software & related with 9% and consumer discretionary in fourth place with 8% of investments.

Year-on-year analysis of the healthcare sector reveals that during the period of 2010 – 2011, healthcare saw a significant drop in deal activity, with a 49% decrease in number of deals. In contrast, the industry witnessed a 67% rise in the number of deals from 2011 – 2012. Since the low point in 2011, healthcare activity has stayed consistent, accounting for 7% of total venture capital activity in the region, slightly below the 10% registered in 2008 and 2009, and more significantly lower than the 12% seen in 2010.

In terms of the proportion of total industry funding across this six year period, healthcare follows a similar trend: steady during 2008 – 2010, a drop off in 2011 and an increase from 2012 – 2013 YTD. However, despite representing a consistent 8% of the value of all venture capital deals in the BRIC region in 2008, 2009 and 2010, the aggregate value of healthcare investments was rather sporadic during this period: $420mn, $200mn, $358mn respectively. During 2011, the aggregate value of BRIC healthcare investments, at $215mn, made up 3% of the total value of all venture capital deals in the region. In 2012 – 2013 YTD, the aggregate value of healthcare deals as a proportion of all venture capital investments in the region rose from 7% to 8%, yet the aggregate funding fell by 11%, from $308mn to $274mn.

Recent fundings in this industry include: Indian pharmaceutical development company Theramyt Novobiologics receiving INR 275mn in October 2013 from a consortium of investors including Accel Partners and IDG Ventures India. Preceding this, in July 2013, Brazilian pharmaceutical firm ePharma received BRL 169mn from lead investor Valiant Capital Partners and Aberdare Ventures.

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