The latest figures for biotech financing in the first quarter of 2025 reveal a significant downturn in investment activities within the sector. A total of $6.5 billion was secured during the initial quarter, marking a decline from $8.1 billion raised in the same timeframe in 2024, as reported by GlobalData, a prominent data analytics firm. The analysis indicates a total of 162 venture capital investments were recorded, representing a 9% decrease from the first quarter of last year. Notably, the primary therapeutic focus was in oncology, which attracted 76 deals from 217 investors.
GlobalData’s report underscores the persistent challenges in raising venture capital financing, suggesting that the current investment climate resembles downturns witnessed in 2022 and 2023. Investors appear to be prioritizing later-stage companies that can provide concrete clinical data, thereby highlighting a cautious approach in funding decisions. This trend indicates a shift in investor preferences towards opportunities that promise shorter timelines for revenue generation and market access as opposed to engaging in the risks associated with longer-term developmental projects.
According to Alison Labya, a GlobalData analyst, “The higher deal values for late-stage firms underscore a distinct realignment of investor risk appetite—a trend that has been observed since 2024.” She elaborates that amidst ongoing macroeconomic uncertainties, venture capitalists are increasingly favoring investments with clearer paths to profitability rather than those laden with prolonged developmental risks.
The onset of the second quarter of 2025 has already seen several significant financing rounds raised by firms in late-stage development. Additionally, new companies emerging from stealth mode have also managed to garner attention and interest from venture capital investors. Below is a summary of notable financing news from the past month:
—Granite Bio has emerged from stealth mode, announcing a financing round totaling $100 million, although not all of this amount is new funding. This financing package includes a $30 million Series A round spearheaded by founding investors Versant Ventures and Novartis Venture Fund, alongside a $70 million Series B round led by Forbion and Sanofi Ventures.
Granite Bio’s product pipeline features two innovative antibodies, both of which have been developed through collaboration with Versant’s Ridgeline Discovery Engine based in Basel, Switzerland. The first antibody, GRT-001, acts as an inhibitor targeting the drivers of autoimmunity and inflammation known as monocytes, and is currently undergoing Phase 1a testing on healthy volunteers. The company is poised to initiate Phase 1b testing for inflammatory bowel disease later this year. The second antibody, GRT-002, is designed to block interleukin-3, a crucial signaling protein involved in inflammatory pathways associated with itch and allergy responses, with expectations to enter clinical trials by 2026.
—Stately Bio, a biotech firm, has emerged from stealth mode, revealing it secured $12 million in funding alongside an innovative AI-imaging platform technology aimed at developing cell therapies and regenerative medicines. Based in Palo Alto, California, this startup claims its platform differs from existing cellular imaging technologies that often damage cells, as it allows scientists to observe live cells, offering real-time insights without physical disruption.
The company was founded by Frank Li, who brought his machine learning expertise from Alphabet’s Calico Life Sciences. Led by AIX Ventures, Stately’s seed financing will be utilized to expand its platform and to develop an internal pipeline of stem cell-derived therapies targeting undisclosed conditions and indications.
—Flagship Pioneering has launched Etiome, a startup dedicated to preemptively addressing diseases with drugs that target the earliest stages of disorders. Utilizing supervised artificial intelligence applied to electronic health records and various data sources, Etiome identifies distinct biostages of diseases, subsequently discovering drugs aimed at these critical temporal points. This innovative startup is supported by a financial backing of million from Flagship.
—Glycomine successfully raised $115 million to proceed with a placebo-controlled Phase 2b test of GLM101, an experimental treatment targeting phosphomannomutase 2-congenital disorder of glycosylation, a rare disease stemming from an enzyme deficiency. Instead of replacing the deficient enzyme associated with the disease, GLM101 aims to substitute a compound that is a vital component of its enzymatic process. The recent financing has been categorized under a Series C round.
—Avidicure has been launched with $50 million aimed at developing multifunctional antibody drugs designed to leverage both the innate and adaptive immune systems to combat cancer. This Amsterdam-based biotech asserts that its drugs, termed AVC Boosters, provide enhanced capabilities compared to currently available biologic drugs. The leading program, AVC-S-101, targets the cancer protein TROP2 and is currently in development for non-small cell lung cancer and other solid tumor types. The seed financing for Avidicure was spearheaded by EQT Life Sciences.
—Attovia Therapeutics has successfully secured $90 million to propel its two lead programs through clinical proof of concept, specifically focusing on chronic pruritus and atopic dermatitis. This biotech firm, located in San Carlos, California, has branded its innovative drugs as attobodies, which are biologic drugs engineered with specialized properties. Deep Track Capital was the leading force behind Attovia’s Series C financing.
—Imbria Pharmaceuticals, a developer of drugs targeting cardiometabolic diseases, has closed $57.5 million to advance its ninerafaxstat treatment through Phase 2b testing for non-obstructive hypertrophic cardiomyopathy. This oral small molecule drug acts as an inhibitor of partial fatty acid oxidation, encouraging a shift in the heart’s metabolic preference from fatty acids to glucose. Such a metabolic shift is designed to enhance cardiac function both at rest and during physical activity, with preliminary data anticipated by late 2026. The Series B financing for Boston-based Imbria was led by new investor Deep Track Capital.
—Merida Biosciences, focused on immunology, has launched with $121 million to support a robust pipeline led by an antibody-like drug currently in late preclinical development targeting Graves’ disease. Merida was founded with the backing of Third Rock Ventures, which co-led the startup’s Series A financing alongside Bain Capital Life Sciences and BVF Partners.
—RayThera, a company engaged in the development of small molecule drugs for immunological applications, has raised $100 million to advance its preclinical pipeline towards Phase 1 testing. The company’s website lists three anti-inflammatory programs targeting undisclosed objectives. The Series A financing for the San Diego-based biotech was co-led by Foresite Capital and OrbiMed Advisors.
—Neurona Therapeutics has successfully raised $102 million to propel its cell therapy NRTX-1001 into Phase 3 testing for epilepsy. This therapy, derived from human pluripotent stem cells, utilizes cells that secrete the inhibitory neurotransmitter GABA to mitigate seizure activity effectively.
—Solu Therapeutics has secured an additional $41 million in financing to develop innovative drugs that combine antibodies and small molecules to target difficult-to-reach drug targets. Its lead program, STX-0712, is currently undergoing Phase 1 testing for chronic myelomonocytic leukemia and other blood cancers. This Boston-based biotech’s programs and technological platform were licensed from GSK.
—HepaRegeniX has successfully completed a financing round totaling €21.5 million (approximately $24.3 million) to finalize an ongoing Phase 1b trial and advance to Phase 2a testing of HRX-215, its lead candidate aimed at liver regeneration. This innovative drug is an oral small molecule that targets MKK4, a key regulator of liver regeneration. Inhibiting this enzyme is expected to enhance the liver’s innate regenerative capabilities. The second close of financing added Wellington Partners to the Tübingen, Germany-based biotech’s investment consortium.
—Atsena Therapeutics has raised $150 million to support ongoing Phase 1/2 tests of ATSN-201, a gene therapy targeted at addressing the vision disorder known as X-linked retinoschisis. The Series C financing for Durham, North Carolina-based Atsena was led by new investor Bain Capital.
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