No startup sector was completely immune to the market uncertainty of 2022 – except perhaps AI – but some proved more resilient than others. Biotech was one of the most fortunate.
According to Pitchbook, the industry recorded 1,054 US-based deals in 2022, representing a combined value of $30.7 billion facts. Those numbers fell short of the 1,415 biotech deals closed in 2021 worth a total of $39 billion. But the declines weren’t the worst we found: biotech posted a more modest year-on-year decline in investment volume (21%) than many other sectors, including fintech (37.7%), consumer technology (53%) and enterprise technology (33%). %). %).
Comparing the results of any sector to 2021 is somewhat misleading as that year was the peak of the latest startup boom. Compared to the more conservative 1,143 biotech deals of 2020 worth $29.6 billion, completed at the same level last year.
US biotech deals also set new records in 2022 for both median deal size, $33.5 million, and median valuation, $38 million.
Biotech investors told australiabusinessblog.com that while they certainly felt the pressure of overall economic conditions last year — and noticed tourism investors shying away from the category, similar to other sectors — many weren’t surprised to see the category outperform some of the other more vibrant industries for a few key reasons.