U.S. biotech financing drops 46% in Q1 compared to 2021

Venture financing deal value for U.S.-headquartered biotech companies dipped by 46% in Q1 2022 compared to Q1 2021, according to analysis from GlobalData. 

The data and analytics company said the decrease was due to venture capital firms becoming more selective in their investments due to the current economic and geopolitical uncertainties.

Mariam Shwea, business fundamentals analyst at GlobalData, said, “While a large number of early-stage biotechs went public with inflated stock prices in 2021, Q1 2022 entered a bear market with stock prices plummeting and many biotechs trading below value as a result. Venture capital firms are now more selective in their biotech investments for 2022 compared to 2021.”

GlobalData’s Deals Database found oncology received the largest total venture financing out of the top five therapy areas, with a total deal value of $1.5 billion in Q1 2022. 

Oncology in top spot

The continued growth in funding for oncology is reflective of the large patient populations with high unmet needs for numerous oncology indications in the US and globally.

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