Total Number of Biotechs Raising Venture Funding Per Quarter

“Over time, about 25% of any given quarters’ financings are for newly backed startups (”first financings”); further, the overall number of quarterly biotech financings have been relatively constant at ~120 companies…this implies that the typical life of a venture-backed biotech (at least with regard to their venture financing needs) must be about ~4 years. This data suggest that within that period of time, most biotech’s must seal their fate – either via death (shutting down) or by no longer needing venture funding (e.g., IPO, M&A, non-dilutive deal making self sufficiency). Otherwise, if it took a longer time on average to reach that fate, we’d see an increasing pool of biotech companies getting venture financed over time, which we largely haven’t over the past decade.”

– Source: Bruce Booth “Data Snapshot: Venture-Backed Biotech Financing Riding High,” Forbes, 4/21/15

new VC-Backed Biotech Startups (First Financings)