August 31, 2016
CBRE’s latest snapshot of venture capital investment in San Diego reveals an increasing flow to the sector, including the largest biotech VC investment in the U.S. Every quarter, except for one since 2015, venture capital investment in San Diego has been more than $100 million higher than the average quarterly total.
Total VC investment increased in Q2 2016 to $388.9 million, up 7.6% from Q1 2016 and 182% from Q2 2016. Human Longevity accounted for $220 million (94.4%) of biotech investment. This was the largest biotech deal and the third largest overall VC deal in the U.S. for the quarter, behind Uber and Snapchat.
Additional CBRE report findings include:
- Deal volume was 21, the fewest since Q2 2013
- VC investment so far in 2016 reached $750.4 million, compared to $511.1 million in Q1 2015
- Q2 2016 investment was 48.3% higher than the quarterly average from 2013 to present
- Biotech investment led all industry types in Q2, with $233 million in VC investment
- Software investment in San Diego was the next highest, with eight deals totaling $72.4 million. This was nearly $31 million higher than the previous 4-quarter average. The largest software deal in Q2 was Seismic Software ($40 million).
- An unusually low volume of medical device deals (3) were done with San Diego companies in Q2, with dollar volume reaching only $25 million. This is 35% lower than the quarterly average.
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