Excerpt of article from Mike Freeman for the San Diego Union Tribune:
“There were a couple of mega-deals in the last six months, two large deals that accounted for $241 million,” said Ryan Spencer of PricewaterhouseCoopers in San Diego. “But even if I remove those two deals, this was still the best six-month window since mid-2012.”
Those local megadeals were Sapphire Energy, which raised $91 million in the fourth quarter, and Suja Life, a health food juice maker that pulled in $150 million in the third quarter.
In the fourth quarter, local firms received $334 million, which is up from $124 million for the same quarter in 2014.
“We had 27 deals this quarter,” said Spencer. “While that is not out of line with what the average is, the deal size has been increasing over the past few quarters. So I think we are seeing a larger amount of dollars being targeted toward a smaller number of companies”
As usual, life sciences obtained the bulk of the region’s venture capital dollars — with 47 biotechnology and medical device companies pulling in $605 million.
“Of the top 10 deals in the quarter, eight of them were in life sciences,” said Spencer. “You have a good mix, with sizable deals in biotech but also in medical devices.”