Cultivating an understanding of the VC investment landscape of US-based biotech & pharma startups.

Origin: PitchBook Analyst Note: Betting on Biotech

Key takeaways:

  • Over the last few decades, the biotechnology & pharmaceuticals (biotech & pharma) industry has seen a shift from drug development through internal R&D efforts at large-cap public incumbents to an M&A-based model.
  • The drug development lifecycle, characterized by clear intermittent milestones and long-payback periods with high upside, makes biotech startups uniquely positioned to receive illiquid VC investment.
  • As VC biotech investing has evolved, three distinct models have emerged for commercializing new technologies.
  • Biotech startups take a different funding trajectory than most VC- backed startups, raising larger sums more quickly.
report here