Genomics - Yoy Funding by Stage

In the YTD, the genomics sector saw a 116% ($1.3B) rise in funding activity at the early stage, accounting for 76% of the total funding into the sector.

This is also attributed to the development of a fast evolving secondary genomics market which includes sub sectors like clinical genomics and bioinformatics, that have grabbed the lion’s share of the early stage funding activity.

The rise of the secondary genomic market is also attributed to the stagnation and slowdown in the primary genomics market. The primary genomics market is centered around sequencing technology, that generates huge amounts of unorganised and unstructured genomic data. This is also alternatively explained through the performance slump by Illumina, a bellwether company in the primary genomics sector.

So, bioinformatics caters to software solutions which can be used to store, mine or analyze this data while clinical genomics can help in the application of the same in diagnosing and treating disease. Hence, the primary genomics market has actually given rise to new business models in the secondary genomics market.

This was also reflected in the total amount of funding secured by bioinformatics ($643M) and clinical genomics ($323M), which together accounted for nearly 70% of the total funding into the sector. Consequently, clinical genomics, bioinformatics and sequencing technology were also the top funded business models

In terms of overall funding, the sector continues to witness a YoY rise with $1.7B secured in 91 funding rounds, marking the third $1B+ funding year in a row. Likewise, average investment ticket size at the Series A and Series B also witnessed a 80% and 65% rise respectively.

Some of the years top investment rounds by ticket size were bagged by San Diego-based Human Longevity ($220M), Shenzhen-based CarbonX ($155M), Mountainview-based 23andMe ($115M), San Diego-based Grail Bio ($100M) and US-based Guardant Health ($100M). The top five investments of the year accounted for 59% of the total funding into the sector.

major acquisitions - genomics

The sector also witnessed considerable acquisition activity with at least 10 major buyout deals. San Diego-based Sequenom’s acquisition by Labcorp (for $371M), Ohio-based Assurex Health’s acquisition by Myriad (for $225M), New York-based Recombine’s acquisition by CooperSurgical (for $85M), Australia-based Conexio Genomic’s acquisition by Illumina (undisclosed) and Germany-based New Oncology’s acquisition by Siemens were some of the notable deals.

The sector also witnessed a lone IPO activity for the year as California-based NantHealth took the public route.

Mohr Davidow Ventures, Orbimed, Sequoia Capital, ARCH Venture Partners and Illumina were the most active investors.

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