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Biotech Wrap: Year-End Struggles

Throughout most of 2000, it seemed that biotechnology companies would be one of the glues that would keep the dotcom bombed venture capital industry together. Indeed, overall deal volume increased each of the first three quarters and more and more pure tech-focused investors began investigating the fiscal implications of such events as the final mapping of the human genome.

And then came the fourth quarter.

According to preliminary figures from our VentureXpert database, only 39 biotech firms received venture dollars from 72 firms. That compares to 70 companies receiving in the first quarter, 78 in the second quarter and 94 scoring in the third quarter.

The only bright spot in this year-end drop-off, however, is that the average biotech firm receiving fourth quarter deals grew to $20.56 million. In the first quarter, average biotech deals were worth just $8.82 million. Average second quarter deals came in at $7.04 million, while third quarter deals were at $13.36 million. In all, the preliminary data indicates that VCs pumped approximately $3.381 billion into the biotech sector in 2000.

The top ten investment firms in terms of amount invested last year were: Forward Ventures, 3i Group, Alta Partners, Warburg, Pincus & Co., MPM Capital, Ventures West Management Inc. , Apax Partners & Co. Ventures Holdings Ltd. , Frazier & Co. , Atlas Ventures, and Index Ventures.

Looking Back Even FurtherAccording to our VentureXpert database, 892 biotech companies have raised $8.935 billion. The average deal size has been $10.02 million. Shannon Jarrell can be contacted at Story Feedback.