Life Sciences Funding in View: 2025 Outlook

Venture Capital

Improved Capital Investment

2024 Total U.S. Life Sciences VC Funding

› Deal activity in the U.S. ticked up in 2024, with VC funding reaching $30.5 billion, up 16% YOY. Investor enthusiasm for continued innovation in the sector, optimism about expected interest rate cuts, and the strength of the economy drove deal volume higher. However, the number of deals declined, leading to a significant rise in average deal size, which reached $18 million (+54% YOY) and exceeded 2021 levels by 23%. › Investment was primarily focused on early- and later-stage companies, with angel investment jumping to $31 million (+76% YOY). Late-stage companies experienced a 20% YOY increase in volume at $16.3 billion, as the attractiveness of more established companies continues to interest investors. Early-stage companies saw a resurgence in capital, with deal volume increasing 20% YOY to $12.1 billion. › Deal size also increased across most company types, with early-stage companies experiencing the largest increase, growing to nearly $36 million (+31% YOY). Seed-stage companies also saw growth, with average deal sizes nearing nearly $6 million (+38% YOY).

$60

3,500

$49.6

3,000

$50

2,500

$40

$36.6

$35.7

2,000

$30.5

$30

$27.3

$26.4

$24.5

1,500

$20.0

$20 $Billions

1,000

$14.5 $14.9

$11.9

$10

500

$0

0

CRE VIEW: Larger deal sizes provide seed- and early-stage companies with more capital for investments, increasing the likelihood of additional rounds. This bodes well for potential life sciences leasing activity in 2025.

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Capital Invested

Number of Deals (RHS)

Source: PitchBook Data, Inc.; *Data has not been reviewed by PitchBook analysts

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LIFE SCIENCES JANUARY 2025 LIFE SCIENCES JANUARY 2025