10 Major Biotech Funding Rounds of 2023
In 2023, the venture capital (VC) landscape witnessed significant activity, providing crucial support to the biotech sector amidst a volatile public-market environment. According to McKinsey & Co., despite a downturn following the peak in 2021, VC funding has maintained a strong presence, consistently surpassing pre-pandemic levels. This resilience is evident as 2023 has already seen over $12 billion raised by the end of the third quarter, a notable continuation from the $22 billion secured by startups in 2022. The overall decrease in funding is attributed more to fewer deals than diminished deal sizes, which have remained relatively stable.
In this article, we have selected 10 biotech companies that managed to secure impressive funding in 2023:
Orbital Therapeutics
Orbital Therapeutics, specializing in RNA-based medicines, has secured $270 million in Series A funding round. This round, led by ARCH Venture Partners, included both previous and new investors such as a16z Bio + Health, Newpath Partners, and Abu Dhabi Growth Fund. The company is advancing RNA therapeutics to treat various human diseases, utilizing a platform that combines existing and emerging RNA technologies. Their approach aims to enhance the longevity and delivery of RNA treatments across multiple cell types and tissues. This funding acquired in the latest series A round will support the expansion of Orbital's technology platform and its therapeutic portfolio.
Generate Biomedicines
Generate:Biomedicines has secured $273 million in Series C funding round, one of the largest rounds for biotech firms in 2023. The company aims to support their lead project with recent investment, a monoclonal antibody targeting SARS-CoV-2, and the filing of multiple investigational new drug applications (INDs). Co-founded in 2018 by Molly Gibson and Gevorg Grigoryan, the company leverages machine learning to innovate in protein generation and optimization for therapeutic use. Currently, Generate:Biomedicines has 17 programs focusing on immunology, infectious disease, and oncology. With this latest funding, the total equity since 2020 reaches nearly $700 million. Key investors include Flagship Pioneering, Abu Dhabi Investment Authority, Fidelity Management & Research Company, Amgen, and NVentures.
ReNAgade Therapeutics
In May 2023, ReNAgade Therapeutics announced a successful $300 million Series A financing, led by MPM BioImpact and F2 Ventures, to develop RNA-based medicines. The company's focus is on creating a platform that integrates proprietary delivery technologies, including novel lipid nanoparticles (LNPs), with tools for RNA coding, editing, and gene insertion. This technology seeks to enhance the delivery of RNA therapies to various tissues and cells, potentially expanding treatment options for a range of diseases.
Tome Biosciences
Tome Biosciences, a biotech startup, has secured $213 million to develop "programmable genomic integration" (PGI), a novel gene editing technology. PGI, based on MIT research, enables the insertion of genetic material into any genome part without DNA damage. This technology targets gene therapies for liver disorders and autoimmune disease cell therapies.
Founded by Rahul Kakkar, former CEO of Pandion Therapeutics, Tome Biosciences' funding comes from Series A and B rounds with investors like a16z Bio + Health and Arch Venture Partners. The Nature-published research demonstrated PGI's ability to insert large DNA sequences across various cell types. Currently in the early research stages, Tome Biosciences has not announced a lead candidate or human trial dates but plans to present its progress soon.
Aiolos Bio
Aiolos Bio, Inc., a clinical-stage biopharmaceutical company, has launched with a focus on respiratory and inflammatory conditions. The company secured $245 million in Series A funding from a group of investors including Atlas Venture, Bain Capital Life Sciences, Forbion, and Sofinnova Investments, with RA Capital Management also contributing.
The company's main project involves advancing AIO-001, a monoclonal antibody targeting anti-thymic stromal lymphopoietin (TSLP), into Phase 2 clinical trials for moderate-to-severe asthma patients. AIO-001 is noted for its potential biannual administration due to high potency and long half-life. The drug is also under investigation for other immune conditions, such as COPD and CSU. Aiolos Bio acquired global rights to develop and commercialize AIO-001 outside of greater China from Jiangsu Hengrui Pharmaceuticals Co., Ltd. in August 2023. Previous clinical studies have indicated AIO-001's safety, tolerability, pharmacokinetics, and biological activity in both healthy volunteers and asthma patients.
Genesis Therapeutics
Genesis Therapeutics completed in August 2023 a $200 million Series B financing, increasing their total funds raised to over $280 million. This California-based biotech company specializes in using artificial intelligence (AI) to develop medicines for severe diseases. The fresh capital will help Genesis transition into a clinical-stage company, enhance its advanced AI platform, and broaden its drug discovery pipeline.
Central to Genesis' approach is the Genesis Exploration of Molecular Space (GEMS) platform. This proprietary AI technology combines generative and predictive models, molecular simulations, and chemically aware language models. GEMS is designed to identify and develop drug candidates for challenging targets, especially those lacking extensive data or considered undruggable due to complex chemistry. The GEMS platform accelerates the drug discovery process by rapidly generating, testing, and refining potential drug molecules through AI-driven methods.
Upstream Bio
Upstream Bio, a clinical-stage biotech firm, has raised $200 million in Series B financing to advance UPB-101, their lead therapy for asthma and chronic rhinosinusitis with nasal polyps (CRSwNP). The funding, led by Enavate Sciences and Venrock Healthcare Capital Partners, will support UPB-101's progression through crucial clinical trials.
UPB-101 is a monoclonal antibody designed to inhibit the TSLP receptor (TSLPR), a key player in the inflammatory response associated with various allergic and inflammatory diseases. By targeting TSLPR, UPB-101 aims to disrupt the early stages of the inflammatory cascade, offering a novel approach to treating these conditions at their root.
ElevateBio
ElevateBio, a technology-driven company focused on powering the creation of life-transforming cell and gene therapies, has raised $401 million in Series D financing. This funding is intended to expand and enhance ElevateBio's unique cell and gene therapy technologies and to grow their therapeutic pipeline. The investment was led by AyurMaya Capital Management, with participation from new and existing investors.
The company specializes in various advanced biotechnological platforms, including gene editing, induced pluripotent stem cells (iPSCs), and RNA, cell, protein, and vector engineering. These technologies are crucial for the development and manufacturing of cell and gene therapies. ElevateBio's approach combines these platforms with their BaseCamp® facility, which provides end-to-end genetic medicine manufacturing and process development.
Terremoto biosciences
Terremoto Biosciences, a San Francisco-based biotech, secured $175 million in Series B financing, boosting their total capital to $250 million. The funding round saw contributions from new investors EcoR1 Capital, Novo Holdings, and Cormorant Capital, as well as continued support from existing investors OrbiMed and Third Rock Ventures.
The company plans to utilize these funds to enhance its technology platform and further its multiple discovery and development programs. These programs are focused on addressing diseases with significant unmet medical needs. Established two years ago, Terremoto Biosciences specializes in developing small-molecule medicines. Their approach uses an expanded covalent alphabet, enabling them to create treatments that are highly targeted, potent, and effective. The company's technology aims to develop both best-in-class therapies for known drug targets and first-in-class medicines for previously untapped high-value targets.
ADARx Pharmaceuticals
ADARx Pharmaceuticals, a clinical-stage biotech company from San Diego, has completed a Series C financing round led by Bain Capital Life Sciences and TCGX, securing $200 million. This funding will support the advancement of their lead clinical programs, ADX-324 and ADX-038. ADX-324 is being developed for hereditary angioedema, a genetic condition causing severe swelling, while ADX-038 targets multiple complement-mediated diseases.
The company is known for its work in RNA therapeutics, focusing on mRNA silencing and editing technologies. These therapies are designed to treat a broad range of diseases by targeting specific mRNA sequences, potentially offering new treatment avenues for genetic, cardiovascular, and central nervous system disorders.
Topic: Biotech Ventures
