Wonder

Research Outline

Prepared for Matt H. | Delivered April 9, 2020

Specialty Carve-Out Healthcare Benefits Industry and Silicon Valley Investments

Goals

To determine the market size of the specialty carve-out healthcare benefits industry along with identifying comprehensive industry reports on the market. To also find out the volume of venture capital invested per year in Silicon Valley / San Francisco Area startups from 1950 to present.

Early Findings

According to a report published by McKinsey in 2019, the global value of corporate divestitures, including spin-offs and carve-out sales to strategic or financial buyers, has increased at a steady pace from US$1.7 trillion in total transactions in 2010 to US$2.1 trillion in 2017.
In the health sector, med-tech companies have also seen a similar rate of growth with the total deal value of divestitures increasing from US$3.9 billion in 2010 to US$10.9 billion in 2017. 
The volume of assets that these med-tech companies divested during this period amounted to more than US$25 billion.
According to a report published by the Boston Consulting Group in April 2019, between 2009 and 2019, private equity firms in the United States have undertaken 463 carve-out deals worth US$68.5 billion. 
Between 1995 and 2002, the total volume of venture capital invested in the state of California was US$108.38 billion from a total number of 12,412 investment deals.
Overall, in the United States, the total volume of venture capital investments increased from US$7.64 billion in 1995 to US$99.72 billion in 2000, and then decreased drastically to US$21.32 billion in 2002.
According to the latest information available, venture capital investment deal flow in Silicon Valley declined significantly from US$41.9 billion in Q4 2018 to US$29.6 billion in Q1 2019.