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PitchBook Analyst Note: Biotech Went To Work as the World Stayed Home

Q1 2021

PitchBook Analyst Note: Biotech Went To Work as the World Stayed Home

March 30, 2021

PitchBook Analyst Note: Biotech Went To Work as the World Stayed Home
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How biotech became VC's beacon of hope
 

As the world battled through the pandemic, VC investment in biotech & pharma thrived in 2020. The industry saw $28.5 billion invested across 1,073 deals—a 60.5% year-on-year increase—as investors recognized the importance of vaccine development.

Our latest analyst note explores how supercharged investor interest in innovative biotech startups has driven the sector beyond its early-year projections and why VC-backed biotech & pharma financings are expected to remain strong this year. Among the highlights:
 
  • Details on recent trends that have shaped the industry, from access to public capital to the proliferation of new financing structures such as SPACs.
 
  • Insights into the still-hot IPO market for VC-backed biotech companies, which saw $11.5 billion raised across 73 biotech public listings in 2020.
 
  • A look at the ways IPOs and M&A activity have funneled liquidity back to investors, who in turn have redeployed resources and human capital back into the biotech & pharma space.