According to PricewaterhouseCoopers (PwC) latest MoneyTree™ Report, venture capital funding for the life sciences sector, including biotechnology and medical devices, fell by 1 percent in dollars invested and 3 percent in the number of deals in 2013, compared to 2012 activity. Year-end numbers, however, were more encouraging, with life sciences investments rising to $1.8 billion in the final quarter of the year (Q4), up 19 percent from the $1.5 billion invested during the previous quarter. The industry’s share of total venture capital funding fell, however, from 25 percent in 2012 to 23 percent in 2013.

PwC Life sciences Partner Greg Vlahos said, “The fourth quarter and 2013 year-end numbers show there is continued interest in Biotechnology even as Medical Devices slowed down during the year. With the strong exit markets for biotechnology in 2013, 2014 is set up for renewed interest in life sciences. The enduring interest in early-stage opportunities will continue to drive investments in the sector.”

Titled “Medtech slowdown,” the PwC February 2014 report also notes that the top five metropolitan regions that received the most life sciences venture capital during Q4 2013 were “san Francisco Bay ($550 million), Boston ($382 million), seattle ($186 million), san Diego Metro ($95 million), and New York Metro ($83 million).”