Healthcare companies attracted $2.4 billion in venture capital financing, nearly one-third of total venture investment made in the second quarter of 2007, but it wasn't just the draw of biopharmaceutical companies that deserve the credit. Medical device companies garnered more than $1 billion in investment, a 58 percent increase from the second quarter a year ago. It represented and a record level of investment for the medical device sector, according to Ernst & Young LLP and Dow Jones VentureOne. Biopharmaceutical companies, the perennial favorites of healthcare investors, attracted $1.1 billion in investment in 86 deals. Overall, U.S. companies continued to attract significant venture capital money. Venture financings reached $7.4 billion during the quarter, an increase of 8 percent over the same period last year. The quarterly deal count also rose 8 percent to reach 717 deals, the highest deal volume since 2001.

VENTURE FUNDING FOR MEDICAL DEVICES