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Finance Watch: Biopharma VC Funding Dips In Q3, Remains Relatively High For Year

With Exits Down, So Are New Financings

 
• By Mandy Jackson

Private Company Edition: Third quarter venture capital funding for biopharmaceutical firms fell from Q2, but activity remains near all-time highs year-to-date. Several companies announced VC financings in early October, including Ascidian, which launched with $50m in series A financing.

Finance Watch Private Company
• Source: Shutterstock

Venture capital investment dropped about 41% for biopharma firms for the third quarter from Q2, with 94 companies raising $4.5bn in Q3, down from 251 companies that raised $7.6bn in Q2, according to the Venture Monitor report from the National Venture Capital Association (NVCA) and Pitchbook. But despite the stark quarter-over-quarter decline, 2022 still is the third-highest VC fundraising year on record for the sector. With a year-to-date total of $23.8bn, 2022 falls behind the record-breaking years of 2020 and 2021, in which the industry raised $28.7bn and $38bn, respectively.

The biopharmaceutical industry experience is consistent with VC trends across all industries. Overall, investment declined by almost 20% across all industries to 4,074 deals in the third quarter from the...

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