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Infographic – US Biotech Investments Stay Strong

Chart: biotech venture investments

Click on image for full-size view (Pitchbook, NVCA)

16 July 2022. The first half half of 2022 shows venture investments in U.S. biotechnology start-ups cooled from the blistering pace of last year, but biotech remains a robust sector. Data on venture capital investments in the U.S. for the first six months of 2022 were reported this week by National Venture Capital Association and investment market research company Pitchbook (registration required).

The Pitchbook-NVCA Venture Monitor report shows in 2022 so far, biotech and pharmaceutical start-ups in the U.S. raised $17.8 billion in 512 venture deals. While the pace of investment dollars and deals does not quite match the white-hot rates experienced in 2021, this industry is still on track to meet or exceed the totals of $28.1 billion raised in 1,097 deals in 2020. In fact, the $17.8 billion raised in the first half of of 2022, already exceeds the $17.7 billion in total investment dollars raised for biotech and pharma start-ups during all of 2019.

Another sign of strength in this industry group is the larger deal sizes this year. The average venture capital deal among biotech or pharma start-ups so far in 2022 exceeds $40 million, and the median size deal of $10.6 million, recorded by at least half of the transactions, is in both cases higher than the average and median deal sizes in the previous two years, and double that of 2019.

Biotech and pharma companies raising funds in their third or fourth venture rounds continue to make up a larger percentage of investment deals. So far in 2022, nearly four in 10 venture deals (38%) are made in those C and D rounds, a growing trend in this sector since 2019. Almost as many deals (36%) are made with biotech and pharma companies in rounds A and B, but only about a quarter (26%) of the deals so far in 2022 are made with the newest start-ups, those raising funds in angel and seed rounds.

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