Over recent years, venture investments in Biotech have been substantial; that is no secret. Perhaps what may not be as widely observed is how those investments have changed in the company stage over the years. It would appear that money is moving toward more mature companies.
by Fritz Reichenbach, Managing Member of Third500 LLC
"Biotech deals remain one of the spotlights of general health care venture space. Biotech attracts billions in capital yearly, among the largest of any healthcare vertical. The surge from 2020 to 2021 was largely driven by the enthusiasm of the broad investor base and an increasingly aware LP community for the importance of biotechnology research due to the global pandemic. This is driving new capital into funds focused on the space. When we look at the stage breakdowns, what we observe both on the ground and through data, is that the space remains young and vibrant. While the dominance switch from Series A to Series B signals an increasingly mature space, it remains heavily tilted toward younger companies. Given all this, we expect Biotechnology VC to generate strong returns for investors in the years to come as they mature and find their exits."