Biotechnology proves an unexpected bright spot in the start-up adjustment in 2022
There is no start-up field Completely immune to market uncertainty in 2022 — with the possible exception of AI — but some proved more resilient than others. Biotechnology is one of the luckiest industries.
The sector recorded 1,054 US-based transactions in 2022, worth a total of $30.7 billion, according to Pitchbook. data. Those numbers don’t equal 1,415 biotech deals made in 2021 totaling $39 billion. But the drop wasn’t the worst we’ve seen: Biotech showed a more modest year-over-year decline in investment volume (21%) than many other sectors including industrial financial technology (37.7%), consumer technology (53%) and enterprise technology (33%).
Comparing any sector’s results to 2021 is somewhat speculative, as that year was the peak of the last startup boom. Compared to 2020’s 1,143 more conservative biotech deals of $29.6 billion, last year was calculated at par.
US biotech deals also set new records in 2022 for both average deal size, $33.5 million, and median valuation, $38 million.
Biotech investors told TechCrunch that while they certainly felt overall economic conditions tightened last year — and found travel investors shunned this category, similarly. like other sectors – many people are not surprised that this category performs better than some others. industries are noisy for a few key reasons.