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Tuesday, March 27, 2012

Healthcare Is The Hottest Sector For Startup Funding


BI Intelligence
March 27, 2012
Healthcare Is The Hottest Sector For Startup Funding

Business Insider Intelligence is a new research and analysis service for real-time insight and intelligence about the Internet industry. The product is currently in beta. For more information, and to sign up for a free 30-day trial, click here.

Healthcare took the largest percentage share of angel funding last year with 33.8 percent of funding dollars, according to a new report by Silicon Valley Bank. The internet, broadly defined, had the second largest share with 27.2 percent of funding dollars. However, as a percentage of deals completed, the Internet led with 33.8 percent followed by healthcare with 24.1 percent

There are several takeaways from the findings:

  • Many people (including some very influential investors) vew healthcare as a staid industry ripe for disruption;
  • Generally speaking, it costs more money to get a healthcare company off the ground than a web startup;
  • Early stage investors are very bullish: the median angel round was up 40 percent from 2010.

Click here to read our note on how the way companies are getting financed is completely changing →

2011 Angel Funding By Sector

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