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A column chart that shows annual, global biopharma venture capital deal activity from 2021 to 2025. Funding peaked at $55.7 billion in 2021, then declined to $30.9 billion in 2023. It slightly rebounded to $34 billion by 2025, indicating a downward trend followed by modest recovery.

Global biopharma VC deal value

Private biopharma investing saw a modest rebound in 2025 that signals continued momentum this year, per a new PitchBook report.

Why it matters: It's welcome news to biopharma founders and fund managers, which have been facing one of the toughest fundraising markets in recent memory.

By the numbers: Biopharma VC deal value grew 6% year-over-year to $33.8 billion across 1,171 deals in 2025, per PitchBook's report.

That's still down considerably from the deal frenzy seen in 2021, when companies raised $55.7 billion across 1,935 deals.

Yes, but: Last year was the first since 2021 that deal count increased year-over-year, reflecting how more companies are landing investments.

What they're saying: "Despite remaining below 2021 levels, higher dollars across fewer deals in 2025 signal an investing posture that is more selective rather than exuberant as the market recovers from the post-2021 contraction," the report says.

Context: Generalist investors flocked to biopharma during the COVID-19 pandemic but have since retreated from the sector as AI opportunities in other industries grow.

State of play: Biopharma companies raised massive rounds last year, especially in the fourth quarter.

Oral and injectable obesity treatment Kailera Therapeutics raised a $600 million Series B led by Bain Capital in October.

And that same week, Kardigan, a cardiovascular drug developer, raised a $254 million Series B.

The intrigue: The top four most active biopharma VC investors since 2019 include RA Capital Management (224), Alexandria Venture Investments (202), Arch Venture Partners (151) and Novo Holdings (127), per PitchBook.

The most active strategic biopharma acquirers since 2019 include Eli Lilly (17), Novartis (12), Sanofi (11) and AbbVie (10).

What we're watching: How investors react to growing exit values.

The number of VC-backed exits — either an IPO or M&A transaction — fell from 98 to 79 in 2025, but deal value grew nearly 7% to $35.5 billion year-over-year.

The bottom line: "We expect biopharma VC to continue its recovery, driven by high-conviction capital deployed toward opportunities with clearer paths to returns," the report says.

Biopharma VC trends point to continued rebound in 2026

Biopharma venture capital investment saw a modest rebound in 2025 that's expected to persist — "more selective than exuberant" — per a new PitchBook report.

Private biopharma investing saw a modest rebound in 2025 that signals continued momentum this year, per a new PitchBook report.Why it matters: It&#x27;s welcome news to biopharma founders and fund managers, which have been facing one of the <a class="gtmContentClick" data-vars-link-text="toughest fundraising markets" data-vars-click-url="https://www.axios.com/pro/biotech-deals/2026/02/02/sante-ventures-closes-330m-fund" data-vars-content-id="ba3f276e-1436-4018-bd0f-ef0990dbd226" data-vars-headline="Biopharma VC trends point to continued rebound in 2026" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/biotech-deals/2026/02/02/sante-ventures-closes-330m-fund" target="_self">toughest fundraising markets</a> in recent memory.

Biopharma VC trends point to continued rebound in 2026

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