Health care venture capital dollars up 28%.Venture capital dollar flows directed toward health care companies increased 28 percent since the first quarter of 1999, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a report by PricewaterhouseCoopers Securities/Shattuck Hammond Partners. But the health care industry's share of total venture-backed investments--$796 million, or 10.4 percent of a record $7.67 billion--continued to decline as venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed 5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M [1] focused on Internet-related opportunities in other industries. The proportion of investments directed toward health care companies has declined steadily from a high of 24.6 percent in the fourth quarter of 1997 to its current low. A number of sectors are represented by the 54 health care service companies receiving investments. After falling Out of favor in 1998, physician practice management companies returned to the fore In advance; to the front; to a prominent position; in plain sight; in readiness for use. In existence; alive; not worn out, lost, or spent, as money, etc. - W. Collins. See also: Fore Fore , receiving a total of $52 million. Health care information technology companies also gamed substantial investment dollars. Assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. and nursing home companies ranked at the bottom of the list, receiving $11.54 million, or just 4.6 percent of the $252 million invested in health care services companies. This reflects the increasingly difficult reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. environment that these industry segments face. Each of the health care industry segments represented tended to concentrate in a different part of the country. Biotechnology and medical device companies were mostly concentrated in Silicon Valley, while health care services companies were predominantly in the Southeast, and pharmaceuticals in New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. . Survey questionnaires were mailed to venture capitalists Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. . Answers from 505 firms represented a 66.5 percent response rate.
Providers receiving venture capital
in the the second quarter of 1999
CaraVita Senior Care $5,000,000
Management Services Inc.
Olympus Healthcare Group Inc. $2,400,000
Southern Assisted Living Inc. $1,550,000
Torch Health Care Inc. $1,200,000
Ger Assist. $800,000
NextCare Inc $590,000
TOTAL $11,540,000
Source: Shattuck Hammond/PricewaterhouseCoopers
Securities Health Care Venture Capital Report
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