New England Experiences Spike in Valuations and IPOs
February 14, 2014
Boston and the greater New England venture capital ecosystem are perhaps best known for their innovations in pharmaceuticals and healthcare technology. This is exemplified by the numerous biotech IPOs the region has seen since the beginning of last year, as well as the sheer number of VC financings New England receives in the industry (often between 20%-25% of the United States' total biotech deal count). But some startling statistics beyond what's already known have emerged, and it's not related to a lamentation of the state of technology companies in the region.
PitchBook data show that VC investors poured in $4.3 billion across 496 New England deals in 2013, both figures of which are stark drops compared to 2012. As seen in the chart above, the region saw steady growth in the number of VC deals and capital invested from 2009 to 2012, before declining last year, not unlike the national trend. But while deal flow may have fallen in 2013, valuations are up—way up.
To learn why valuations are way up and get a detailed look at the biotech IPO boom in New England, click here.