Investments in the diagnostics and tools (Dx/Tools) sector remained steady in 2016, according to Silicon Valley Bank’s annual report, Trends in Healthcare Investments and Exits 2017. The report authors found the industry is attracting new investors and is optimistic that the sector’s prospects for big exits (valued at $50 million or more) will improve in 2017. Silicon Valley Bank (SVB) says that overall health care venture investing was "strong" in 2016, but did not reach the record levels set in 2015. However, in 2016, Series A investments in early-stage technologies set records in all health care sectors, including Dx/Tools. SVB data shows that the Dx/Tools sector saw "meaningful" early-stage momentum last year, with 51 deals closing in 2016, the highest number of deals since the 39 that closed in 2013. The value of these deals rose to a high of $478 million, the highest since 2014’s $252 million in series A investment. Within the sector Dx outpaced tools garnering 59 percent of the Series A dollars invested. Grail was the largest venture-backed Dx/Tools Series A deal ($125 million) seen. ""While Dx exits declined in 2016, we see a significant number of companies ramping revenue towards $30-$50 million."." —Jonathan Norris Managing […]