An increase in down rounds in 2023 indicates a reassessment of valuations in VC. Challenges are expected to persist in the sector through the H1 of 2024, grappling with repercussions from previous excesses and a challenging fundraising environment. The initiation of a new year in healthcare and life sciences business development and finance coincides with the annual J.P. Morgan Healthcare Conference, sparking renewed optimism for ventures.
However, the close of 2023 did not witness strong figures. Venture activity in partnerships declined, except for deals between ElevateBio secured $401 million in May 2023 in a Series D round focusing on advancing gene editing medicine. Monogram Health closed a $375 million funding round in January 2023 for its in-home care model, primarily catering to kidney conditions. Nephron Pharmaceuticals celebrated a $350 million capital raise in September 2023, specializing in generic inhalation. Neuralink obtained an additional $43 million in VC in November 2023, expanding a prior funding round. ReNAgade Therapeutics raised $300 million in May 2023 in a Series A round led by supporting its RNA-based therapy platform and collaborations with Orna Therapeutics and Merck.
Ventures In Global Healthcare
Venture funding experienced a decline from 1,374 in 2022 to 1,078 in 2023, with the total amount raised decreasing from $49.6 billion to $37.1 billion during this period. The cumulative investment across 2,452 funding rounds stands at $86.7 billion.Â
Venture Totals In Therapeutics & Platforms
Number of funding rounds dropped from 520 in 2022 to 426, indicating a decline in VC involvement. Concurrently, the total funds raised decreased from $24.3 billion in 2022 to $20.9 billion in 2023. Over the past two years, 946 funding rounds accumulated $45.2 billion, reflecting a weakened investment compared to the preceding year.
Therapeutics Areas For Ventures
Cancer leads in venture funding among therapeutic areas, with 155 rounds raising $7.5 billion. The Neurologic & Endocrine/Metabolic followed closely, securing $2.2 billion and $1.7 billion, respectively. Ophthalmic & Autoimmune sectors also attracted attention, raising $1.6 billion and $1.5 billion. The cumulative data for all therapeutic areas indicates 388 funding rounds and $19.4 billion raised.
Top Technologies For Ventures
Small Molecule takes the lead with 124 funding rounds, gathering a significant sum of $6.3 billion. Biologics follows closely, which includes antibodies, DNA, RNA, proteins, etc., with 118 funding rounds and a total of $6.1 billion raised. Substantial funding also went to Cell Therapy, Gene Therapy and Vectors, and Immunotherapy. Despite representing a smaller portion, Gene Editing/CRISPR still drew noteworthy investment. The combined data shows 334 funding rounds and $17.4 billion raised considering all modalities.
Venture Totals – Devices & Diagnostics
Venture funding for medical devices and diagnostics changed significantly in 2023. The number of funding rounds declined from 346 in 2022 to 248 in 2023, with a decrease in the total amount raised from $10.7 billion to $7.8 billion.
Venture Totals – Manufacturing, Services & Healthcare AI/Ml
Venture funding subsectors for manufacturing services, software, and healthcare AI/ML saw a notable decline in funding rounds, dropping from 352 in 2022 to 302 in 2023. This reduction was coupled with a reduction in the total amount raised from $13.7 billion to $8.3 billion.
Top Rounds 2023
ElevateBio’s Series D Financing Round – May 2023
ElevateBio successfully concluded its Series D, securing $401 million. The AyurMaya Capital Management Fund, managed by Matrix Capital Management, led the funding, with participation from a consortium of new and existing investors. The capital infusion is earmarked to advance ElevateBio’s technology platforms, including life editing, gene editing, iPSCs, RNA, and support BaseCamp for genetic medicines.
Monogram Health’s Funding Round – January 2023
Monogram Health announced successful closure of a $375 million funding round. Geared towards value-based care for patients with polychronic conditions, the funds will sustain the implementation of Monogram’s in-home care model for kidney and polychronic conditions. Additionally, the capital will support technology-driven clinical services, covering complex case and disease management.
Nephron Pharmaceuticals Corporation’s Capital Raise – September 2023
Nephron Pharmaceuticals celebrated a significant capital raise, securing $350 million. This funding is led by BlackRock Capital Investment Advisors, LLC, and PNC Bank, which reflects strong support for expanding the pharmaceutical manufacturer. Specializing in safe, cost-effective generic inhalation solutions, Nephron also operates a 503B Outsourcing Facility addressing drug shortages.
Neuralink’s Additional Venture Capital – November 2023
Neuralink, founded by Elon Musk, secured an additional $43 million in VC on November 25, 2023. This followed the expansion of a previous funding round led by Peter Thiel’s Founders Fund. Neuralink’s brain-machine interface technology involves device implanting ultra-thin threads into the brain.
ReNAgade Therapeutic’s Series A Financing – May 2023
ReNAgade Therapeutics announced the successful closure of a $300 million Series A financing round. The funding is led by MPM BioImpact and F2 Ventures, which supports ReNAgade’s RNA-based platform, addressing challenges in therapy delivery. The company’s joint venture with Orna Therapeutics and subsequent collaboration with Merck further enhance its capabilities in RNA therapeutics.
