INDIANAPOLIS (AP) – Indiana’s life sciences sector attracted record $ 257 million in venture capital funding in 2020 despite the state’s economic hardship caused by the coronavirus pandemic, said a Indianapolis-based group.
Total venture capital funding for 2020 was more than triple the amount a year earlier, according to figures from BioCrossroads, which tracks critical funding that helps growing life science companies.
Figures show that 39 Indiana companies signed deals in 2020 for $ 257 million, with an average deal of $ 6.6 million. In 2019, 34 Indiana companies signed deals totaling $ 74 million.
The large increase comes after the state’s 2019 life sciences venture capital funding was the industry’s lowest since 2015, the Indianapolis Business Journal reported.
Venture capital is a critical source of funding for start-up and mid-stage companies that are too young or too untested to go public or merge with a larger company.
Investors provide the money in return for a partial stake in growing companies, which often use the money to pay for expensive clinical trials and to develop prototypes.
The 39 companies that secured venture capital funding in 2020 represented a wide range of therapeutics, devices and health information companies.
Venture capital funding deals ranged in size from $ 10,000 to $ 60.9 million, with just seven companies accounting for the lion’s share, $ 226 million. Thirty-two companies shared the remaining $ 31 million.
- According to the source Indiana’s life sciences sector sees record venture funding.
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Source: Twitter AP
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