Biotech Companies Raised $58.8 Billion in Q1, the Highest Figure in the Market's History

May 5, 9:02 pm

After raising more than $425 billion over the past three years, biotech companies are set to hit a new record as VC funding activity skyrocketed in the first three months of the year. According to data presented by, biotech companies raised an impressive $58.8 billion in Q1, the highest figure in the market's history.

45% of Last Year's Total Raised in Just Three Months

Unlike many other markets, biotech saw impressive funding activity last year as VC investors continued pouring money into innovative platforms that could revolutionize the sector. Although the funding activity remained below the peak in 2021, biotech companies still raised an impressive $136.6 billion, the third-highest figure in the market`s history. However, 2024 might set a new record, with companies and startups from this sector raising nearly 45% of last year`s total in just three months.

According to Crunchbase data, biotech companies and startups raised $58.8 billion in Q1, 107% more than in the same period last year and the highest quarterly figure in the market's history. On the other hand, the number of investments dropped. Statistics show the biotech sector saw 227 VC investments in Q1 2024, down from 268 in Q1 2023, indicating that companies raised more money in fewer funding rounds. The strong funding activity continued in Q2, with biotech companies raising another $10 billion in the past month.

With almost $69 of fresh capital poured into the market year-to-date, the cumulative funding amount in the biotech sector rose to a whopping $932.2 billion. Nearly 75% of that value, or $675 billion, went to companies from the United States, with California as the leading hub. European biotech companies raised the second-highest value, or close to $130 billion, and their Chinese counterparts follow with $70 billion in total funding.

Biotech Companies Raised Almost Five Times More Money than AI Startups

The total amount of money poured into biotech companies in Q1 is even more impressive compared to other sectors that also witnessed strong VC funding activity this year. For instance, AI companies and startups raised $12.5 billion in the three months of the year, almost five times less than the biotech sector. Also, the total funding amount in the AI market hit $361 billion last week or 2.5 times that in the biotech industry.

The fintech sector, also one of the trending industries for VC funding in 2024, saw $16.8 billion of fresh capital in the three months of the year, or 3.5 times less than the biotech sector.

With VC investors injecting billions of dollars into the market each month and providing a much-needed lifeline for biotech innovation, the entire sector is expected to hit over one-trillion value in the next four years.

Read more about the best Biotech stocks now.

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