Biotechgate monthly report provides a summary of biotech financing in May 2024, highlighting trends, investment values, and notable funding rounds in the life science industry.
In May 2024, private equity investment in the biotech sector saw a decline in both total value and number of financing rounds compared to April 2024, with notable variations across different regions. The sector's total investment value decreased from USD 3.3bn in April to USD 2.5bn in May, indicating a cautious approach or a possible reallocation of funds by investors. The number of financing rounds dropped slightly from 70 to 63, suggesting fewer investment opportunities or a more selective strategy.
Most financing rounds in May 2024 continued to target US-based biotech companies, though there was a slight decrease in investment value (April: USD 2.6bn vs. May: USD 2.2bn) and a slight increase in the number of rounds (April: 31 vs. May: 35), indicating a broader spread of smaller investments.
In Europe, the aggregated investment value decreased from USD 371m to USD 311m, with the number of rounds dropping from 20 to 18. The Rest of the World saw a significant decline in investment value from USD 329m to USD 174m, and the number of rounds fell from 21 to 12, highlighting a more pronounced pullback in investments outside the US.
Funding rounds below USD 5m and those surpassing USD 30m each contributed almost equally to the total funding landscape, at 33% each. In terms of the allocation of funds for these deals, among deals over USD 30m, 5% were Seed rounds, 24% were Series A rounds, with Series B and C rounds each contributing 29%. For deals under USD 5m, 19% were Seed rounds, 24% were Series A, and 5% were Series B rounds. Additionally, transactions within the USD 5m to 15m range accounted for 22%, and rounds between USD 15 and 30m represented 11%.
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