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Biopharmaceutical pipeline funded by venture capital firms, 2014 to 2024

Research output: Contribution to journalArticlepeer-review

Abstract

Venture capital (VC) firms fund biopharmaceutical research and development (R&D) while incurring substantial financial risk. VC firms seek to invest in clinical areas with the greatest potential for financial return. Using a combination of data for clinical trials and VC investment deals between January 2014 and March 2024, we found that approximately 75% of VC investments were allocated to clinical trials studying smallmolecule drugs compared to biologics or gene therapies, without substantial changes over the study period. Most of VC firms’ investment in biopharmaceutical R&D was concentrated in phase 1 and phase 2 clinical trials. This trend has increased in recent years, with phase 1 trials accounting for nearly half of total deals and capital investments in 2023. VC investments were concentrated in several therapeutic areas, including cancer.

Original languageEnglish (US)
Article numberqxae124
JournalHealth Affairs Scholar
Volume2
Issue number10
DOIs
StatePublished - Oct 1 2024

Keywords

  • biopharmaceutical industry
  • drug development
  • investment in research and development
  • prescription drug policy

ASJC Scopus subject areas

  • Health Policy

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