Based on recent financing data, 2018 is positioned to be a blockbuster year for life sciences company IPOs. 2017 third quarter VC financings were the highest in the industry’s history, and investors are returning to the sector, searching for undiscovered, disruptive technologies.
We’re seeing signs of a healthier market in 2018,” Wende Hutton, general partner, Canaan Partners, says. “There was a lot of uncertainty after the 2016 presidential election. Forty percent of the IPOs in Q1 2017 failed to meet their “in range” prices, and many withdrew. So far in Q4 2017, none has failed to meet their expected prices.” That indicates a better match of demand and quality that meets investors’ expectations, which has triggered the return of both hedge fund and general investors.