In 2013, venture-backed biopharmaceutical and medical device investments had potentially one of the highest potential returns on investments, according to a report from Silicon Valley Bank, a commercial, international and private bank.
The heightened ROIs are partly influenced by increased healthcare mergers and acquisition activity as well as initial public offering activities, which tripled in 2013, according to the report.
Additionally, healthcare venture fundraising passed $3.5 billion for the past three years.
"2013 was the year of the IPO," said Jonathan Norris, SVB managing director and author of the report, in a news release. "Built on solid healthcare M&A activity over the last few years, the venture industry continued to see momentum and a burst of IPO activity that provided spectacular potential returns for investors….We predict healthy access to capital in 2014 and into 2015."
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