Deep DiveEmerging biotech
Biotech startups run on venture capital. Track this year's funding rounds.
Six companies raised more than $700 million between them last week, though two rounds accounted for most of the total.
By Daniel OkaforPublished · 1 min read
Venture funding for drug startups has recovered from its 2023 low, but the money is concentrated. The largest tenth of financings now account for nearly half of all capital raised.
Bigger rounds, fewer companies
The median Series A this year is $62 million, up from $45 million two years ago. The number of companies receiving a first institutional round has fallen by about a fifth over the same period.
Investors describe the shift as a response to the last downturn. Rather than seeding many companies and seeing which survive, firms are giving fewer startups enough money to reach human data without returning to the market.
Where the money is going
Autoimmune disease has overtaken oncology as the most funded therapeutic area for new companies. Platform companies without a named lead program are finding it hardest to raise.
If you cannot tell me which patient gets which drug and when the first data arrives, it is a difficult conversation.
Recent rounds
| Company | Round | Amount | Focus |
|---|---|---|---|
| Osprey Lane Bio | Series B | $280M | Autoimmune cell therapy |
| Kestrel Ridge | Crossover | $210M | Oncology |
| Ionwell | Series C | $95M | Metabolic disease |
| Fennmark | Series A | $70M | Neurology |
