There is "intense" investor interest and "substantial" investment occurring in the next generation of diagnostics and tools companies (Dx/Tools), according to a year-end report published by Silicon Valley Bank (SVB). Driven by interest in the use of big data and artificial intelligence (AI) to inform care, big-name technology firms are now leading investment in the diagnostics sector. "Generalist investor and tech corporate investment activity in Dx/ Tools has surged," write the authors, led by Jonathan Norris, managing director at SVB. "We expect today’s top tech companies to also become the next generation of top Dx/Tools companies. With dedicated Dx/Tools teams, these tech giants could drive sector growth for the next decade." The report, Technology Advancements Redefine Promise of Dx/ Tools, defines Dx/Tools as including proprietary tests, actionable data analytics to determine or direct necessary treatment, and research equipment and services. Who is Receiving Funding? In total, eight rounds of financing in the Dx/Tools sector have exceeded $100 million since 2015. Dx/Tools fundraising increased 40 percent in 2017, reaching $2.8 billion. However, 60 percent of this total—or $1.6 billion—came from "mega" investments in liquid biopsy companies Guardant Health (Redwood City, Calif.) and GRAIL (Menlo, Park, Calif.), an Illumina spin off. "Like […]