Life Sciences Snapshot – Q2 2024 – A Quarterly Report on Financing Trends

This edition of Orrick’s life sciences publication series reviews key trends of venture investment in the life sciences industry during Q1 2024. This edition also features key industry leaders in a roundtable discussion about neurological disorders, the necessity for innovation to address these crucial barriers in brain health, and the catalysts for increased funding and support.

Key findings include:

• Life sciences VC deal value in Q1 totaled $7.8 billion, which represents a 22.1% increase in value from Q4 2023. A total of 349 life sciences deals were completed in Q1, a 20.7% decrease in deal count from Q4 2023. Q1 marked the slowest quarter for life sciences deal count since Q3 2017, but larger deal sizes buoyed cumulative value for the industry.
• Valuations showed resilience early in the year, rising across all company stages in Q1. Valuations in the late-stage VC category rose 42.4%, making up for the 11.0% decline seen in 2023, while valuations in the early-stage VC category grew 12.5% after having plateaued in 2023.
• Larger deals exhibited more durability in Q1, with deals over $100 million representing a larger portion of total deal value and count compared to 2023.
• Exit activity is still muted, but each of the past three quarters saw more than $6.0 billion close, which represents a tepid upswing from 2022 and early 2023. There were 10 IPOs in Q1, accounting for $1.8 billion, compared with just 31 IPOs in all of 2023.