Speaker 1  0:00  
Morning to everyone and welcome to today's webinar, healthcare investments and exits 2021 annual report presented by Autumn. My name is Samantha Spiegel, Autumn's Professional Development Manager, and I will be your staff host for today. All lines have been muted to ensure high quality audio, and today's session is being recorded. If you have a question for our speaker, we ask that you use the chat feature to send those in. You can also ask any technical questions that you have, or any share any comments through the chat. Before we begin, I would like to take a moment to acknowledge and thank autms 2021 online professional development sponsor. We appreciate your ongoing support. I now have the pleasure of introducing you to today's presenter, Milo bison. Milo is director of the medical device and health tech portfolio in the southwest and central region for Silicon Valley, Valley Banks, Life Sciences and Health Care Group based in San Diego. He is responsible provide for providing his clients with valuable pages are out of order valuable advice and insights about their relevant sector and delivering customized financial solutions leveraging SPBs unique platform. In his 15 years with SBB, Milo has worked with private and public companies of all stages across the technology and life sciences sector, and originated several 100 million dollars in new loans to support his clients and increase their probability of success. Milo holds his bachelor's degree in finance from Santa Clara University, and with that, Milo, I will turn it over to you, and I apologize for not memorizing.

Speaker 2  1:36  
No, no problem, maybe I should just shorten the bio. But yeah. Thank you so much, Samantha for having me into autumn. This my first time, kind of working with with the group of presenting here. So excited about that. Hopefully we can make it a regular thing. We the bank publishes this report twice a year, so once in January and then once again in July. It's really kind of our flagship report in our healthcare group. It's widely cited in, you know, healthcare technology blogs and websites, as well as used commonly and a lot of VC, you know, VC fund meetings and companies use it quite a bit in in their pitch decks to just citing valuation data and other things. So glad I got an opportunity here to share with everyone. So why don't we kick it off? You can go that the report is kind of broadly structured into first we'll talk about BC fundraising, and then the kind of total investments into healthcare, and then after that, we'll talk about the exit environment for venture backed healthcare companies. So that's kind of 123, how it'll go. So why don't we move into the next slide and the next one there? So this is looking at new VC fundraising in 2020 in the US and Europe. And the kind of headline number is really that it was an all time high this year, over 16, nearly $17 billion in in 2020, this is the kind of for four successive years, the growth in healthcare, venture dollars raised. It grew and increased every for the last four years, and then we saw 57% increase in 2020 it's really led by high valuations, big mezzanine, round step ups, and then followed with quick IPOs. And then companies really performing well once they go public. This drives really great results for companies and and their investors, and then it positions investors well when they're raising their next fund. We're also seeing that as companies are getting public quicker, the investment cycle is picking up, and therefore investment funds are their fundraising cycle is shortening. Historically, most venture funds would raise every three to four years, and that's kind of shortened to more like two years every two years now. So we are also seeing tech and generalist funds that were like non healthcare specific show an increased focus in the health tech space. But then, as you would expect, they also invest quite a bit into healthcare companies that leverage AI and machine learning technology, in particular for drug discovery and diagnostics and tools companies and. And a similar number of healthcare funds raised from from 19 to 20. But what we're seeing is the actual fund size is almost doubled, plus a lot of what are traditionally kind of series A B, early stage venture firms are now raising opportunity funds which are kind of later stage focus so they can either double down on their winners or do later stage deals where they may be missed out on the series A and it's important to note that these, these numbers that we're quoting here don't even include SPACs, but that's just another pool of capital to invest into venture backed companies that we estimate that there's approximately $2 billion raised for healthcare focus backs in 2020 you can go to the next slide.

Speaker 2  5:59  
Now this is looking at the total investment into healthcare companies in 2020, so it was a record year, $52 billion invested into healthcare companies in the US and Europe that was driven by a q3 you know, over $15 billion invested in q3 is the largest health care venture fundraising or not funded venture investment quarter. Ever since we've been tracking this data, we're really, really, really exciting. So we saw a 50% jump from 17 to 18, and then now another 47% increase in 2020 it just insane growth that we're seeing, and there's more capital than ever being deployed into healthcare, which is which is fantastic to see. Every single sector was up. In particular, diagnostics and tools was up 77% largely driven by investment into companies helping with testing and tools to help with the COVID pandemic. And then biopharma companies also up 58 sorry, 56% this year. And in q2 we saw very strong activity, even despite of the kind of you know, largely shut down US economy, and it just kind of speaks to the resilience and network within healthcare to be able to do deals and get them done without even being able to meet face to face, which is how things normally get done. So you can go to the next slide now this is looking at series A deals in biopharma in particular. This is, I think, for folks on this webinar, the kind of the series A information here that we provide so like Newton, kind of basically first institutional investment into a healthcare company is kind of what is probably most notable for the folks on the call you're working with, you know, early technology, and what's going to happen for those companies is, once they develop that technology, to a certain point, you do some friends and family raises, Some seed raises, and then ultimately, kind of probably raising a Series A from from venture investors. That's the typical goal. And we'll talk about kind of investment in series A valuations, and then also several of the most active investors in the space. So I would this part, I think should be interesting for everyone, but so we're seeing quite a bit of activity in the neurology space, actually in biopharma. Last year, which is pretty interesting. Series a dollars were up 32% from 2019 but they were actually off the 2018 record year. The top kind of dollar indications within biopharma were oncology platform companies, which are companies that are early but can have haven't necessarily picked an indication, but has a platform that can be used in multiple indications. And then in neuro as I said, neurology had the biggest growth in dollars, up 600% in 2020 orphan and rare disease companies had the biggest decrease, down 73% we're not sure exactly what's driving that, potentially, the price of the price of drugs, which you know, if it's an orphan or rare company, the price of those drugs is very high, but I think time will tell there if that's a trend or if that was kind of just something we saw last year. That's part of a normal cycle. Dollars in Europe were up, but corporate venture participation in. In Europe for series A was was down last year. You can go to the next slide.

Speaker 2  10:13  
So biopharma hit a record, $25 billion investment in 2020, just, um, that, I mean, you think about that, that was like the total dollars invested in all of healthcare, you know, just a few years ago. So just crazy numbers. Um, the oncology, again, the oncology and platform companies, they comprise 57% of of all the venture investment, neuro funding, up 155% from 2019 platform platform dollars up 100% most oncology and platform companies were at pre clinical stage, so getting a ton of dollars Very, very early in their company's life cycle, the increase in funding, the increase in funding number is also led by large crossover rounds that companies will do kind of a Series A, then A crossover series B, and then go public shortly thereafter, a crossover round usually includes an investor that participates in both private and public financings. Then there's a lot of those getting done. We call the we have also this kind of term that we use, called lipo deals, or likely to IPO, or they're $40 million plus financings by top 15 crossover investors. We track these as predicates for an IPO pipeline. And historically, since 2017 65% of these deals have gone public. So it's a pretty good proxy for which companies are going to get out and which aren't. There were 93 lipo private financings in 2020, 33 then going public by the end of the year, and likely deals that went public this year showed a median three months time from their mezz mezzanine or crossover round to their IPO with a 1.4x step up from the venture to the MES round, and then another 1.4 step up from the mezz round to the pre money IPO value. So just kind of, in a very short amount of time, rapidly increasing valuations, and again, that's what helps drive the interest in healthcare and allows these venture funds to raise, raise money. You can go to the next slide. This is looking at most active investors, new investors, meaning that they made their first investments into a company. You'll see that kind of crossover, crossover investment, again, been was very big in terms of geographically, Massachusetts leads in terms of the number of deals and the dollars invested. Crossover investors take four of the top five most active investor spots, Janus logos, Viking and Wellington management join the top 15 active crossover list, Aramark bio ventures fund, that's BBF foresight and tap stock, they all dropped off this list. Samsara bio capital takes the most active VC investor spot, replacing orbit. Massachusetts did twice as many series A and later stage, biopharma deals as NorCal. That may be the first time we've ever seen that. I'm usually those two regions for biopharma are pretty neck and neck, but just a ton of activity in the Boston area and then Southern California, New York rounded out the top, top four geographies. Again, this is, this is the probably the list you know that you'll be sharing. You know the type of list that you'd be sharing with entrepreneurs that you're working with in academia, as you're saying like hey, as you think about venture fundraising in a few years. These are the type of names that you want to be talking to. You can go to the next slide. So this, this is a slide just on analysis from our cipher bio product. It's a cipher bios in a it's an SUV incubated data platform to search for companies and investors by financings, but then also by the underlying science. It's really cool. We we kind of funded it and built it in house, with the help of some you know, non bankers. So. But it's a it's a really cool tool, and what we saw was Alexandria perceptive arch and RA were the top neuro investors over the past two years. So if we're this slide is kind of directly looking at a deeper analysis early stage neuro investing. And the platform also just allows you to search for top indications and approaches. It's a great tool for competitive analysis and to see which venture funds are focused on specific indications or area of expertise. So I will likely provide Samantha a link to that, and everyone can can go check it out after the presentation, I would encourage you to you go to the next slide. So this is now looking at series, a health tech deals. Health Tech is, is, I would say, relatively still a nascent space, but it's starting to mature a bit, and it's it's probably the fastest growing area of investment within healthcare, as I said earlier, it's attracting both traditional healthcare investors and generalist tech investors, and it's a really exciting space. I feel fortunate that I get to cover it and work with some really exciting and innovative companies. So we're seeing what we're seeing is larger series A rounds, in particular in alternative care companies is what we classify as companies that are delivering care outside of the traditional brick and mortar Mom and Pop. You know, medical office, or primary care office, the alternative care company, has raised over $500 million in 2020 via Series A, the Series A, the actual volume declined by 6% in terms of like number of deals, but the total funding increased by 14% over over 2019 in person clinics have adopted virtual care, largely in 2020 resulting in kind of a hybrid Care modality which accounts for 15% of the total alternative care of series a financing. We really kind of believe that that largely, I think, driven by the it was already kind of a trend, but the pandemic only exacerbated is that, you know, every medical or every care provider has to have some type of telehealth, you know, offering and post pandemic, once things start to return to normal, that telehealth isn't going to go anywhere, but largely, providers are going to be moving into this kind of hybrid care modality of both in person, brick and mortar, but then also telehealth offerings to give patients optionality there New York, very active in health tech led series, a deal count over Massachusetts and California. So you go to the next slide. This is looking at health tech, number of deals and dollars invested by the kind of sub sectors that we classify within health tech. There's a, I don't have it here in this presentation, but I will this, will have the full report distributed after this, and there's a glossary in there. And you kind of go, and you kind of go through the definitions of the various sub sectors, but we're seeing there is three and a half times more, 100 million dollar plus rounds within health tech and clinical trial enablement companies hit $2 billion in investment, which is really cool. I work with a handful of them in in Southern California, we're seeing increasingly that virtual trials are not just done in the hospital setting, but technology is enabling it to be done in the home or otherwise done virtually. I eight other comments here. So 2020 there was 40 $200 million plus mega rounds which accounted for 42% of the total 15 point 3 billion raised in health tech. And this was the first time ever that total health tech deal surpassed biopharma deals. There were 615 done in health tech and 570 done in biopharma. As I said, it's the fastest growing area of healthcare. The clinical trial enablement enablement companies increased by 58% from q2 to q3, 2020, again, largely driven by by the 10 by. The pandemic, and it's just challenge. It's just challenge companies and drug discovery and clinical trial spaces to adopt products from these emerging companies. So we're seeing just a ton of traction from them and a ton of growth.

Speaker 2  20:16  
Go to the next slide. This is looking at most active new investors in Health Tech. New active investors are mostly focused on the later stage alternative care companies. That's where we're seeing the most new investment. There's a fair amount of cross border investment into into health tech from China and Hong Kong investors, but only 3% of health tech deals were syndicated with cross border investors. And Massachusetts and New York have seen the most deal growth since 2019 increasing by 30% each. And I'll just also call out that you can see, you know, quite a bit of what I think most people will consider, historically tech focused companies there in the in the most active investors list, ABC, you know, Bessemer, several others there, Sequoia, so, more and more interest in healthcare, which is, which is great to see. You can go to the next slide. Yeah, so this is again, serious a diagnostics and tools deals, it remain remain stable, led by dx analytics companies and R and D tools companies, again. Glossary will be in the full report. You can take a look at those definitions, but so series A deals and dollars were flat in 2020 although we did see wide swings in investment dollars among the three sub sectors, we noted increases in R and E tools investment, which is up 53% anti X Analytics, which is up 40% while the X test investment was down 48%

Speaker 2  22:14  
you go to the next slide, yeah, that's the Okay, Yeah, you're on that side. This is looking at deals and dollars by the kind of various sub sectors within dx and tools, the actual investment in the sector as a whole was up 78% in 2020 R and D tools, dollars doubled, accounting for almost half of all the sector investment and most of the large deals were in leveraging AI and machine learning, drug discovery platform companies, dx analytics activity was stable. Had three companies that closed large mezz round financings and then went public seer, progenity and biodesics, and then DX test dollars were up 87% even though the series $1 series a dollars were down 48% as I said on the last slide, the biggest investments were in early cancer detection. So liquid biopsy companies, which we've seen a ton of investment into that over the last few years and other activity in anti infective and platform dx, companies developing COVID 19 testing. Go to then next slide there. Yeah. So this is looking at most active invest investors in DX and tools, again, similar to biopharma led by crossovers, and Northern California is the most active region. So we observed increase crossover activity relative to 2019. Large mesh financings being the biggest reason for it. Europe saw increased deal activity in 2020 led by the UK. And as I said, Northern California kind of dominated the deal activity. They were two times the number of deals in dollars, ahead of Massachusetts, even though the series A activity tended to be relatively similar to that region, Southern California and New York, also active and rounded off the top for in geography,

Speaker 2  24:33  
this is looking at series A in medical device companies. So 2020, series a continued a three year drop was down 15% from 2019 down 32% from 2018 device has been kind of a tough space in terms of new series A investment. There's just a lot less device for. Funds than there were, you know, five or six years ago, and it's larger, just because the returns haven't been that great in this space, with with some with some exceptions, and there are, there is still kind of a, albeit a bit smaller and very active community of medical device investors, which we'll talk about here in a couple slides. But so Europe device series A was up, and European deals landed five of the top 15. Series A deals, which is notable this year, neurology was the only indication to raise more than $100 million in funding up 142% versus 2019 we've seen this trend over the last few years. Neuro neurology or neuromodulation companies have had some good exits in the public markets, and can kind of continue to attract private private venture capital. The biggest drops for 2019 were imaging companies, both in deals and dollars, and then surgical device companies. Go to the next slide. This is looking at total investment deals and dollars by indication the 20 $20 were investment was up in device by 13% led by the later stage deals. The largest increase were in neurology was up 99% and non invasive monitoring, which was up 84% slight. There's also slight increases in cardiovascular companies and imaging companies, non invasive monitoring technologies typically focused on cardiovascular companies, and the four largest yields were all COVID that did some type of cardiovascular measurement. The largest decrease was in surgical kind of similar to the the series a data, it's down 70% which is, we kind of use that as a bit of a catch all device indication. So sometimes tough to parse out exactly what that means, but generally speaking, that kind of miscellaneous device companies with down and kind of had a varied list of high value private device fields. The top eight highest valued companies were in eight different indications, so really kind of spreading the money around, and I guess just goes to really show that there are still pockets of device where a lot of money flows and really good returns can be generated. You go to the next slide, most active device investors. Shane Bay has been at the top of this list for a while. They continue to lead med tech investments. There is kind of notably, a number of new med tech focused funds, Amed, then Sana, sonder Trejo van saunas, some of the folks from that had left NEA, which was for a long time, probably the best and most most notable medical device investors. So think really highly of those folks. Northern California led all investment dollars by four times any any place else, followed by Southern California, Massachusetts and Minnesota, rounding out the top four.

Speaker 2  28:34  
So that was looking at series A and then investment activity. Now we're going to move into the the exit activity here that we saw. So this slide is pretty if you go to the next slide, it's pretty cool. We created this SVB Global Healthcare index to track post IPO performance of private BC backed healthcare companies since 2018 and what we see is that the SVB Global Healthcare index is recovered faster and substantially outperformed the broader just mid and large cap nascare healthcare index. It's up 71% versus the mid, mid large cap NASDAQ healthcare index was only up 31% it's also outperformed the kind of Facebook, Amazon, Apple, group of stocks, by fit by which, which are only up 52% this has been largely driven by diagnosis and tools companies. Their average performance was up 183% double that of biopharma, as you can imagine, renewed interest in that space due to the pandemic and the value that those companies bring in this current environment. And despite the class of 2018, healthcare IPOs, which performed pretty poorly actually in their first year. Here discusses now substantially outperformed in in 2020 so you know, you never know what's gonna what's gonna happen there, but just, just great to see it. Just, I think, validates that this space is where there's just a ton of growth opportunity, and it's a great space to be working with companies and banking and lending to them. You go to the Yeah. Next slide there. So this is looking at IPO activity. There was 84 IPOs, a record since we've been tracking it beat 2014 record, which is 66 we saw a four year high in M and A numbers total deal value is up 48% to 88 billion. That's an as a new record for us. It note, though that this number looks only at market cap at IPO, and not the post IPO performance. And a lot of companies, as I mentioned earlier, have seen really strong, robust post IPO performance. So that number, kind of is even higher than 88 billion really. And again, the post IPO performance is largely driven by the preclinical and Phase One biotechs. They're up on average, 110% from their from their IPO price, which is just crazy. Go to the next slide.

Speaker 2  31:41  
So we saw some very large M, a, in particular in the in the Q, q4, of 2020, so 13 and 19 deals were early stage pre clinical or phase one companies in biopharma upfront and total median deal values are up, setting six year highs, mostly M and A. Over the past few years, they were small, kind of quick M and A with great exit multiples and short exit times. But this trend has been overturned by some of the big multi billion, like 2 billion plus upfront exits acquired by big pharma in q4 2020, as they're competing against companies that have optionality around getting acquired or potentially going public and getting really strong valuations and then seeing their stock go way up once they go public, so private or large pharma companies having to pay up to get these assets if they want them, the biggest m&a deals bellows bio. And as bio were companies that had raised big mezz rounds, and then they were those lipo companies like the IPO candidates. And it was a response to a great post IPO performance and premiums for public M and A BioPharm companies just realizing they have to go after these deals pre IPO give really big upfront payments in order to get them ahead of them going public.

Speaker 2  33:13  
You go to the next slide. This is again looking at biopharma IPOs and valuations records were set in the pre money valuations. They were at $500 million this is up 47% and IPO dollars raised. That was they were, on average, 200 million which is up 135% so getting higher pre money valuations and raising more money when they go out, the top 15 crossover backed IPOs in 2020 they dominated. That was 61. Of the 84 had had the top 15 crossovers in it, and it outperformed in both the mezz round valuations, and then also the pre money IPO step ups relative to company that didn't have a top 15 crossover in it, and their post IPO performance was better. They were on it on average up 99 99% versus 60% for those that didn't by indication, every indication showed three year post IPO, performance of 70 plus percent. Just insane oncology had the best performance, led by public companies and two that were acquired after IPO, namely synthorix and 47 neuro had 11 IPOs, and anti infectives had 16 IPOs. They showed good performance, but they were off their mid, mid year 2020, highs. There's been noticeable declines by anti infectives Towards the end of 2020, we saw a platform on. Um coming in, which was 43 IPOs showed really good performance from March through the end of the year. And even orphan rare IPOs saw significant positive keep our performance. So you go to the next slide. This is kind of a cool slide. Just looks at billion dollar plus VC backed biopharma, M and A and IPO market cap values. So there were $7 billion private M and A deals in 2020 that's a significant increase over the past few years, and really, again, a function of a hot IPO market pushing acquires to pay more before these companies their cost goes way up once they're public and and killing it in the public markets, more than 55 or 65% of all the 2020 IPOs had market caps over a billion dollars at year end. Just tremendous demand for these assets. They're $20 billion market cap companies for the class of 2019 at year end. At year end, 2019 and that number remains stable, has increased by one to 21 at year end, 2020, 20, then the class of 2018 increased their billion dollar market, getting companies in 2020 as well as graduating two companies to billion dollar M and A's 47 which was bought for 4.9 billion. And the Principia biopharma old client of mine was 3.6 billion. It's always fun when you get to see your old clients. Go get acquired for huge dollar amounts. This is now looking at health tech exit so the again, alternative care kind of leads in the 2020, post IPO performance, the IPO, the IPO market cap for five venture backed public offerings in 2020. Represented 83% of the total exit value despite 10x more M and A deals than IPO. So you can see it's basically what you're seeing is that companies that's the in health that got scale enough to get out generate almost all of the returns in this space, and then the small m and a deals account for, you know, 20% of the returns there. 2020 was really a banner year for the post IPO performance of the of those companies. On average, they were up 108% the median was 90% and all the IPOs since 20 2015 have fared really well, with the median performance of up 71% and as alternative care really becomes kind of the new standard of care like we were talking about earlier, companies are going to shift accordingly. So, for example, TelaDoc acquired la Mongo this year for 18 and a half billion, the first venture backed public M and A to increase their market share within alternative care and then accolade to healthcare Navigation Company also expanded into alternative care through a partnership with Ginger IO, which is an alternative care company. Next slide there Health Tech, M A, we saw m a decline, but we linking that kind of public market interest? Well, we saw 2020, 69 global, private M and A deals matching their rough pace the previous two years. Alternative care M and A activity dropped more than 50% kind of interesting. Again, we think because a lot of those companies believe that they can go public, some of this attributed to the pandemic. But again, public markets are very bullish on the industry that we have a also have an SAP Health Tech index that's up 112% alternative cares companies lead that in their post ideal performance within medium, medium 92% up since going public. You go to the next slide. So this was looking at diagnostic tools, exits. We saw private M and A and IPOs really kind of drive record return. So it was way up in 2020, exit value hit a new record. It was up over 300% from 2019 driven equally by M and A exits and IPO markets, which kind of different right from health equity. Saying, as I. Where the returns were almost entirely driven by the IPO market. There were $3 billion plus private M and A's, which is great to see. It provides an option outline for really well funded companies that had typically opted to go public in prior years. But also, IPO values are way up. The median pre money was up, was the mean pre money was, was 929 million, so almost a billion up 318% in dollars raised in IPO was 170 8 million, up 169% six of the 10 IPOs had billion dollar plus margin caps at IPO. So you generally, what you see is just these companies are going public much later, obviously, than the preclinical and Phase One biotech companies. And thus the valuations of these companies are higher when they get out. The Post IPO performance was also very strong, up 110% and then the of note that two year performance for the class of 2019 is even better, up 130% since going public. You know the next one, yeah, is looking at M and A, so in DX and tools, the deal value in private DX tools, M and A surge 600% led by three big billion dollar plus M and A deals and some larger IPOs. Grail was the largest venture backed private upfront and total M and A ever at 8 billion. It exceeded stem centric upfront, which is 5.8 billion in 2016 that's the big liquid biopsy company, if you're that was kind of founded and spun out of Illumina. If you guys aren't familiar, without that company, big private MMA deals in 2020 just kind of show that acquirers are willing to pay up to grab really interesting pre commercial technology like thrive, who did not have an approved cancer detection test, and also those that are ramping revenue, like Archer dx, thrive was a $2.2 billion total deal value, and then Archer was 1.4 billion total deal value, they both raise large mezz rounds. Archery had also filed to go public before they ultimately were acquired. And this is just great to see, because, again, it's providing more optionality and should drive higher total deal values for these companies. So moving on to device, actually seeing pretty good IPO environment for device companies, again, despite kind of lagging new series A investment, which we talked about earlier. But you know, so despite clinical delays, decreased procedure volume, there was still appetite for for med tech, IPS, they were, they were up pre money. Valuation was up 58% to $469 million raised was 100 and about 150 million, which is up 49% versus 2019 the 2020 exit values be 2019 which is a record year. And 2019 even included the, or, I'm

Speaker 2  43:36  
sorry, 2020 included the, you know, actually, I'm not sure if it was 2019, or 20 now, but the or a surgical deal, which is a $5.8 billion M and A but just great performance in the in the public markets for the device companies that were able to get out, the average post IPO performance among was, was actually the best among all healthcare sectors. At 150% nine of the 11 were trading up at year end with two drug delivery technologies companies trading down. So crazy to see that right, that struggling series A investment in device, but they actually had the best post IPO performance in the public markets of all the the four sub sectors that we that we cover. Then looking at M and A here in a little bit more depth, so the deal values were stable versus 2019 but they've generally been down from 2015 to 2019 there were seven, 510, K pathway deals with median upfront and total deal values of 80 million and 200 million in total the median. The media were down from 20, from kind of 2015 to 2019 up front, which was more like 110 million on average for those years, but, but there's been more in in the kind of earn out milestones is kind of what we're seeing so little bit less upfront, little bit more on the back end, making companies earn it through continued commercial traction, at least for 510 case companies, five of the it's a bit unusual to see a 510 k company acquired before they really started generating meaningful revenue, but there were a couple that were required pre commercial. Five of the seven that were commercial when they got acquired, there were seven PMA deals with a upfront deal value of 118 million and a total deal value of 200 million. Both the medians are lower than what we saw in 2015 to 2019 at 220, versus 325, typically when it's a PMA, novel innovative device, these companies are usually acquired before their commercial five of the seven required before FDA approval and then three were not approved and to receive Mark only the time to exit device goes down to just 4.8 years from the close of this series, a led by some some some PMA deals. Four of the four of the seven exited quicker than three and a half years, which is kind of surprising, but, but great to see again. So plenty of interest in in device and seeing good returns, especially in the in the public markets, for those that can get out. So that's, that's all of the kind of data to go through. If you go to the next slide here. This is just looking at kind of some predictions for 2021, and beyond. This is, I think, what usually, what most people are interested in is like, is this crazy environment that we're seeing going to, you know, continue. We think 2021 is going to come down in terms of venture, venture fundraising from 2020 but still should be very robust. You know, we expect to see continued investment in the early stage and crossover rounds for biopharma companies. What's what's great about, you know, all the fresh capital that's being raised by denture investors is they typically are deploying that over a three year cycle. So, and they have to put that money to work somehow. So, you know, fresh capital that's raised now just gets deployed over the next three years, and shouldn't help continue to fuel a very robust fundraising environment. I think we're expecting to see more IPOs and in health tech. Now that you know, a decent amount have gone out and they're showing great post IPO performance, we think there's going to be continued renewed interest in diagnostics and tools companies, crazy because in prior there was one year where I don't think there was a single IPO and maybe, like two or 3m and A deals in that space, so but obviously just a ton of renewed interest in that space, with with the pandemic. And we do actually think that series, A is going to come back a little bit for device. There's been these little bit of a resurgence in the med tech focus funds, raising raising money, but largely we think that most dollars will be deployed into kind of later stage financings For companies that are finishing clinical trials, if it's a PMA or kind of growth equity investments for companies that are already commercial stage. So that's, uh, that's the outlook, um, and looks like we used most of the hour here. So I'll just open it up for any questions that people they want to put in the chat. They can, or can ask live. I don't know if that's a we're able to do that on this, but sorry. I

Speaker 1  49:52  
was just trying to unmute myself so we can't do a live chat. We can't bring in our attendees. But as a reminder, we will be sharing the. Will report that Mila will send to me, that'll get sent out afterwards, and then again, if you have any questions, feel free to add them into the chat, or you can always reach out to us after the fact, we can hang out for a minute or so and see if any questions come through. Sure,

Speaker 2  50:14  
yeah, the full report, again, it's got some kind of basic some summary slides at the front end that I took out of here. It's actually got an interesting spotlight on venture funding in China that I thought was a little less relevant for this audience, so I stripped out. And then it's got the glossary, which is, I think, helpful for folks to it helps just, I guess, illuminate how we think about and kind of classify healthcare companies. We've spent a lot of time. It's, you know, somewhat tedious to kind of go through and do a lot of this data sorting and classification, but we have folks that have spent a lot of time on it, and I think it's, it's really helped us frame up the data here in a way that's relevant, meaningful, insightful for various groups, folks like like autumn and its members, venture investors, companies. So we're, we're proud of it, and again, glad we were able to share with everyone. Yeah,

Speaker 1  51:25  
absolutely, this is so insightful. Do you think if there was just as we're kind of seeing, if anything comes through, if there was like one or two takeaways, any projections for 2021, but if you think there was like one or two things to know from all this data that you would want our viewers to hear, and, you know, walk away with, what would you say? Yeah.

Speaker 2  51:44  
I mean, I think the key, the key headlines from the report as a whole are that there was record VC funding raised in 2020, like 50% higher than the highest year we've ever had. So that's just a that's a ridiculous amount of capital. And again, that just means that, you know, we should continue to see a robust investment cycle over the next three years, as that all that capital starts to get deployed the I think the total investment dollars will probably come down from from last year. What we really what we saw was there was a ton of companies where, in kind of March May timeframe, when there was just a lot of uncertainty around how things were going to go with the pandemic. That was when investors and companies were like, We need to raise capital, shore up our balance sheets, make sure that we can weather any storm. And that, I think, in part, led to outsized investments. But I think that's going to continue. And I think, you know, who knows how long the you know, the public markets, I guess, will stay active and and receptive. But as of now, for this year, I think at least for the first half of the year, we think the environment is still going to be very, good. And so, you know, on the biopharma side, you'll see very fast and rapid, kind of step up some funding and valuations and quick, quick IPOs, and then kind of Deal, deal values going up just driven by the optionality that companies have by virtue of the open public markets. It's big corporate. Companies are having to decide, do I like? Should I just pay up now higher than maybe I would have in the past, to get this company before it goes public, and then I'm paying a premium once they IPO and their stock goes up 40% on the first day of trading, you know what I mean. So I do think it's gonna that's gonna drive earlier investment by corporates that do venture investment and just earlier. M and A

Speaker 1  54:23  
Excellent. Thank you for sharing those kind of important highlights, like we had some other chat questions come through. So I think with that, I will say thank you to you, Milo, for sharing all of this information. I know it's a lot to digest for our team, so thank you for helping to break it down, share the highlights and give us all these important takeaways, and thank you to all of our attendees for joining today, as well as a reminder, a recording of the webinar will be available for viewing before the end of the week and is included with your event registration. And you can also visit the autm website to view the. Recording or any other past webinars, and don't forget to complete the evaluation. This helps us to serve your needs in the future. So thank you again. Milo, thank you. Thank you. Thank you. And we hope everyone has a wonderful rest of their day.

Speaker 2  55:16  
Thanks, and feel free to reach out to me with questions. I'll make sure everyone gets my comments. My contact information as well.

Unknown Speaker  55:24  
Awesome. That sounds great. Thank you so much. All

Unknown Speaker  55:27  
right. Bye. Now.

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