Pharma Biotools VC Trends

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Pharma biotools VC activity shows mixed signals in 2024 

In Q4 2024, the pharma biotools sector demonstrated resilience amid challenging market conditions, with the deal count increasing 9.3% sequentially to 59 deals, despite total deal value declining 30.6% to $0.7 billion, according to PitchBook’s latest Pharma Biotools VC Trends report. Over the last 12 months, the deal count decreased modestly by 2.9% to 233 deals, while total funding increased by 1.6% to $4.2 billion compared with the previous period. 

Key investment themes shaping the sector include: 
 

• Platform technologies: Investors are increasingly favoring versatile platforms with multiple applications—particularly in AI-driven drug discovery, synthetic biology, and next-generation sequencing—that can drive innovation and operational efficiency. 

 

• Segment-specific activity: In Q4 2024, advanced tech led funding with $287.3 million across 21 deals, followed by emerging tech with $266.4 million across 22 deals, and mature tech with $180.8 million across 16 deals. 

 

• Strategic exits: Exit activity remained challenging with a total of 11 exits over the last 12 months (down from 21 in the previous period)—although public listings doubled from four to eight, indicating potential opportunities for future growth. 

In 2025, the sector is expected to benefit from sustained demand for technologies that accelerate drug discovery and development. Investment is anticipated to focus on platforms that demonstrate clear return on investment through enhanced research & development productivity and manufacturing efficiency.