Biotech VCs are pacing for another record-low year of fundraising amid glimpses of recovery

Life science venture capital firms are pacing for another record-low year of fundraising, potentially hindering the amount of money that startups can draw from over the next several years.

In the first half of the year, the industry’s VC firms have raised just 15 pools of capital from wealthy individuals, sovereign wealth funds, pension funds, or university endowments. That’s down from 53 funds last year and 85 funds in 2022, according to data from Pitchbook.

advertisement

Many VC firms have struggled in the post-Covid era, as they have digested rich startup valuations or their investment overindulgence. The stock market is recovering, but is far from the lush Eden it was for biotechs a few years ago. Those factors are still weighing heavily on many firms, as shown in the fifth annual edition of STAT’s “Ranking biotech’s top venture capital firms,” released this week. But, there are some indications that the pressures are easing.

STAT+ Exclusive Story

STAT+

This article is exclusive to STAT+ subscribers

Unlock this article — plus in-depth analysis, newsletters, premium events, and networking platform access.

Already have an account? Log in

Already have an account? Log in

View All Plans

Get unlimited access to award-winning journalism and exclusive events.

Subscribe