Year Ahead Could Prove Rough For Private Biotech Financing

By most measures, 2022 was a good year for venture capital funds that invest in health care companies, with the total amount of capital raised last year coming in second only to the record-setting figure for 2021. But the strength of the year was front-end loaded and the amounts raised by health care investment firms declined in both the number of new funds and dollar figures during the last two quarters of 2022, falling below the quarterly average for 2020.

Consequently, speakers on a panel at the Biotechnology Innovation Organization’s BIO CEO & Investor Conference said they see difficult times...