May 24, 2019
The latest research by JLL shows a dramatic drop in venture capital funding for San Diego’s life science market. The local sector received just $42 million in VC activity during the first quarter of 2019, a 90% drop from the fourth quarter of 2018 and an 88% decrease from Q1 2018.
The decrease comes on the heels of San Diego experiencing its strongest year ever in 2018, with the market averaging $494 million of VC investment per quarter. Those record investment levels produced sustained growth among companies of all size ranges.
The San Diego life science cluster generated 320,896 square feet of total leasing activity during Q1. This first quarter leasing activity is 9% higher than the first quarter average over the previous five years, pushing 2019 off to a healthy start. Leases signed during the quarter produced just 77,656 square feet of positive net occupancy growth, a sharp decrease from the same period in 2018. JLL points out the reduced growth was driven by a combination of multiple renewal transactions and two companies (Pathway Genomics and Regulus Therapuetics) that downsized operations – each decreasing their footprints by more than 30,000 square feet during the quarter.
Researchers at JLL say things appear to be turning around early in the second quarter. Poseida Therapeutics secured $142 million through a Series C round of financing in mid-April, and Vividion Therapeutics pulled in an $82 million Series B round during the last week of April.
For comments, questions or concerns, please contact Dennis Kaiser