Life science venture capital firms are pacing for another record-low year of fundraising, as shown in the fifth annual edition of STAT’s “Ranking biotech’s top venture capital firms,” released this week. It’s a situation that could potentially hinder the amount of money startups can draw from over the next several years.
In the first half of the year, the industry’s VC firms have raised just 15 pools of capital from wealthy individuals, sovereign wealth funds, pension funds, or university endowments. That’s down from 53 funds last year and 85 funds in 2022, according to data from Pitchbook.
Many VC firms have struggled in the post-Covid era, as they have digested rich startup valuations or their investment overindulgence. The stock market is recovering, but is far from the lush Eden it was for biotechs a few years ago. Those factors are still weighing heavily on many firms — but there are some indications that the pressures are easing.
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