The global* healthcare innovation ecosystem has raised $35B in 2020, led by the US with $22.6B (65%), followed by China with $6.7B (19%) and Europe with $5.5B (16%). Despite financial headwinds from the COVID-19 pandemic, there have been 81 $100M+ global,* venture-backed healthcare rounds, nearly tripling 2019’s totals during the same period.

In 2020, US healthtech overtook US biopharma in terms of deal count (301 deals vs. 261 deals); however, biopharma still reigns in terms of total invested capital ($10.6B compared to healthtech’s $7B). In China, biopharma has maintained the lead over other sectors on both fronts, with 80 deals and $3.4B invested capital. China’s dx/tools is second with $1.8B invested across 60 deals.

COVID-19 has not thwarted private, venture-backed healthcare companies from raising money and closing active deals. In 2020, New York City (US) and Shanghai (CN) have led the world in deals, with healthcare companies in each city completing a total of 71 deals worth $2B. The three remaining top five cities are San Francisco (US) with 64 deals ($2.5B), Cambridge, Mass. with 51 deals ($2.6B), and Beijing (CN) with 43 deals ($729M).

Likewise, geopolitical and macroeconomic forces have not inhibited cross-border activity, as 2020 has seen an uptick in China-based investors participating in US and European company deals. In fact, these syndicated investments have already totaled $5.6B, up from 2019’s $3.5B. Cross-border deals have been driven largely by investors with healthcare interests, as China’s BAT has substantially decreased its investment into the US since 2019.

This year, China has seen 22 venture-backed companies go public ($4.2B total raised IPO proceeds), with an astounding 18 (82%) having a $1B+ market cap. The biopharma sector dominates the public markets, accounting for 13 (59%) of the 22 IPOs in 2020. The strong post-IPO performance of companies on local mainland China and Hong Kong markets have made them attractive options for entrepreneurs seeking an exit opportunity. This year, 12 companies (55% of 2020 IPOs) have gone public on the mainland China exchanges, ChiNext Market or STAR Market, raising combined IPO proceeds of $2.1B (54% of total).