Skip to Content

Venture Capitalists Love Biotech Right Now

Scientific advances and new business models are spurring investor confidence in biomedical-related ventures.
February 24, 2015

Venture capital investment in U.S. life sciences companies soared 29 percent in 2014 from the year before, reaching $8.6 billion, the highest level since 2007. And there is reason to think 2015 will also be a big year for a sector having its third boom of the last two decades.

Biotech is the second biggest category for venture investment after software. VCs are gaining confidence in life sciences companies (which include those developing new drugs and therapies as well as those that make medical devices and equipment) partly because their underlying research has advanced significantly, says Greg Vlahos, life sciences partner at PricewaterhouseCoopers, which published the new numbers. A big spike in IPOs by biotech companies over the past two years has also made the field more enticing.

Distinguishing 2014 from the booms in 2000 and 2007, says Vlahos, was the record number of “megadeals” of over $100 million. The $446 million investment round in Moderna Therapeutics, which is developing a novel class of drugs based on messenger RNA (see “Messenger RNA Could Create a New Class of Drugs”), was the largest Vlahos’s group has ever seen for a life sciences company. 

Keep Reading

Most Popular

This startup wants to copy you into an embryo for organ harvesting

With plans to create realistic synthetic embryos, grown in jars, Renewal Bio is on a journey to the horizon of science and ethics.

VR is as good as psychedelics at helping people reach transcendence

On key metrics, a VR experience elicited a response indistinguishable from subjects who took medium doses of LSD or magic mushrooms.

This nanoparticle could be the key to a universal covid vaccine

Ending the covid pandemic might well require a vaccine that protects against any new strains. Researchers may have found a strategy that will work.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.