Skin in the Game: An Analysis of Venture Capital Investment in Dermatology from 2002 to 2021

Venture Capital Investments in Gastroenterology from 2012 to 2022: A Window into the Future of Gastroenterology

BACKGROUND

Innovation in gastroenterology (GI) is experiencing several favorable tailwinds. Despite the increasing amount of capital invested in the technology and pharmaceutical sectors of GI, trends in venture capital (VC) funding for this field remain understudied. This is the first analysis of VC investment in GI.

PURPOSE

This study aimed to understand the allocation of VC investment in gastroenterology from 2012 to 2022.

METHODS

We conducted a retrospective cross-sectional analysis of VC investments in gastroenterology from January 1, 2012, to December 31, 2022. Data was obtained from the PitchBook private capital market database. Investments were categorized broadly into biotechnology, pharmaceuticals, devices and supplies, healthcare services, etc. Total and annual investments were quantified in USD.

RESULTS

From 2012 to 2022, $33.34 billion was invested in gastroenterology fields involving 3419 deals with steadily increasing growth, representing a compound annual growth rate of 15.7% between 2012 and 2022. Pharmaceuticals and biotechnology received the largest share (64.61%) followed by healthcare devices and supplies (12.75%). Investments in pharmaceuticals and technology had an outstanding increase from 2019 to 2020 of 141% and has yielded the largest sector in each year throughout 2012 and 2022.

CONCLUSION

Our study highlights a notable rise in both the value and volume of VC investments in gastroenterology over time. Particularly noteworthy is the escalating allocation of funds toward biotechnology, pharmaceuticals, and devices which have skyrocketed over the past few years, suggesting a long-term financial interest in the success of gastroenterology innovation. Further research will be needed to explore the impact of VC funding in the field of gastroenterology.