March 16, 2005 06:45 AM US Eastern Timezone
VCs Have Brains on Their Mind: Neurotechnology Industry Experiencing Explosive Growth in Venture Funding Says Upcoming Report from NeuroInsights
BIOWIRE2K
SAN FRANCISCO--(BUSINESS WIRE)--March 16, 2005--A soon-to-be-released report from NeuroInsights, the neurotechnology market authority, will show that venture capital investment in neurotech companies (firms developing treatments for neurological and psychiatric illnesses) climbed a phenomenal 225 percent from 1999 to 2004 -- representing $5.987 billion invested by VCs during that period.
According to data compiled by NeuroInsights, more than one-in-four venture capital dollars invested in the Life Sciences now goes to companies creating innovations in neuropharmaceuticals, neurodevices and neurodiagnostics.
"Five of the top ten leading causes of disability worldwide are caused by problems with the brain and nervous system," explained Zack Lynch, managing director of NeuroInsights. "The good news is that new treatments for those suffering from illnesses such as Alzheimer's disease, depression and chronic pain are emerging quickly. Building on the success of the Human Genome Project and decades of brain research, neurotech now holds the greatest potential for major discoveries, commercial success and real investment opportunities. It's no wonder over 60 venture capital firms made significant investments in private neurotech companies last year."
"Neurotech companies are addressing the largest and fastest growing unmet medical market so there's room for many new companies with good science to compete," said Mark Cochran, managing partner at NeuroVentures Capital. "As a focused neurotech fund, we've talked with over 500 startups in the space and the potential for high return investment has never been more compelling."
About the Neurotechnology Industry
1.5 billion people around the world currently suffer from debilitating neurological or psychiatric disorders -- creating an enormous strain on families, businesses, and entire economies. Yet, until recently, no unified market-based framework was available to help investors easily quantify opportunities, determine risks and understand the dynamics of this unique segment of the life science industry.
Today, things are changing dramatically. Detailed analysis of previously disparate life science categories by firms such as NeuroInsights reveals that neurotechnology is a unique $100 billion industry with three sectors: neuropharmaceuticals, neurodevices and neurodiagnostics. By clarifying growth rates, research breakthroughs and competitive dynamics these firms are enabling the neurotechnology industry to attract more capital and helping investors make more informed decisions.
About NeuroInsights
As the neurotechnology market authority, NeuroInsights(TM) helps investors, industry executives and the public understand and profit from the rapid growth of companies treating brain and nervous system-related illnesses, providing:
-- Industry reports and publications;
-- Custom analysis;
-- Strategic advisory services;
-- Events and conferences;
-- Market news and stock tracking.
Available in April, NeuroInsight's "The Neurotechnology Industry 2005(TM): Strategic Investment and Market Analysis Report on the Global Neurological and Psychiatric Disease Markets," will provide a 10-year outlook on global trends, market opportunities and investment themes in this fast growing, highly profitable industry. The 350-page report will include detailed analysis of technical advancements, intellectual property trends, adoption issues and regulatory risks facing the industry. Neurotechnology companies, research centers and venture funds are profiled, providing the first comprehensive view of the industry's evolving landscape.
Contacts
NeuroInsights
Zack Lynch, 415-229-3225
zack@neuroinsights.com
www.neuroinsights.com
or
William Ryan, 888-247-7926 (Press)
bill@mandala-vss.com
© Business Wire 2005
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