Key takeaways
55
Biopharma companies have landed deals of $100M and above so far this year.
2024 is on track to set the record for deals of this size within the sector.
89%
of US VC funds with a healthcare focus have hit fundraising targets in the first half of 2024.
This level of success outstrips all prior years except 2022.
More than 1 in 4
US healthcare companies that closed a venture capital deal of at least $15M reported a flat or down round in 2024.
This marks the highest proportion of down rounds in recent history.
Valuations are under the microscope
The exuberance of 2021 has given way to an era of unprecedented scrutiny for valuations, with at least 28% of deals in the US reporting down or flat rounds — the highest level seen in recent history.
With many of the unicorns formed in 2020 and 2021 yet to come back to market to raise another round, we expect to see more valuation resets ahead.
Note: The methodology for this analysis has changed from prior reports. Up rounds defined as deals where the pre-money valuation is higher than the prior deal’s post-money valuation. Only deals with a reported deal size are considered for this analysis.
Source: PitchBook Data, Inc. and SVB proprietary data and analysis
Source: PitchBook Data Inc. and SVB proprietary data and analysis.
Investors prioritize quality over quantity
Extended diligence timelines and more conservative deals are making investors more confident. That confidence is translating into continued steady investment growth in 2024.
This investment activity marks the strongest start to a year outside of the pandemic investment boom of 2021 and 2022, laying the foundation for a healthy private market.
Mega deals dominate in biopharma
With 55 deals $100M and above in the first half of 2024, biopharma is on track for a record year.
The other healthcare subsectors appear to have settled into a new normal for large dealmaking after sustaining major drops from their 2021 peaks.
Source: PitchBook Data, Inc. and SVB proprietary data and analysis
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