Much has been made of the recent pickup in IPO market activity. With stock markets and valuations at all-time highs, and many analysts predicting continued strength at least through the end of the year, there’s no doubt that venture capital-backed companies and their investors are benefiting from this year’s IPO boom. But perhaps no space has ridden this boom quite as far as the pharmaceuticals & biotechnology sector, which has been the strongest space for public offerings this year.
The sector’s 26 venture-backed IPOs have comprised half of the 52 companies that were taken public through Sept. 19 this year. And 2013 is already the best year for VC-backed biotech IPOs, far surpassing 2004’s 17 offerings and 2000’s 21 offerings, PitchBook’s data show. Comparatively, VC firms have taken just 13 software companies public this year.