Figures for biotech financing in the first quarter of 2025 have emerged, and their investments are sluggish.
According to data analytics firm GlobalData, the total was $6.5 billion in the first quarter, compared with $8.1 billion in the same period in 2024. The company calculated 162 venture capital investments in the quarter, down 9% from the first quarter of 2024. The highest area of treatment is oncology, which is 76 deals from 217 investors.
GlobalData said in its report that the decline shows that increasing venture capital financing remains challenging. The company added that the current environment reflects similar recessions in 2022 and 2023, with investors continuing to favor late-stage companies with clinical data.
“The higher trading value of late-stage companies emphasizes a significant readjustment of investors’ risk appetite – a trend observed since 2024,” GlobalData analyst Alison Labya said in a prepared statement. “In the context of ongoing macroeconomic uncertainty, venture capitalists are favoring compared to longer development risks compared to clearer pathways for near-term revenue and market acquisition.”
Starting from the second quarter of 2025, the company has raised several rounds of financing in its later development. But new companies emerging from stealth show that they can also attract the interest of venture capitalists. Here is a review of the financing news from the past month:
– Stereobiology emerged from Stealth Announced $100 Financing, but that’s not all new funds. The cash breaks down into a $30 million Series A funding led by founding investors Versant Ventures and Novartis Venture Fund. Forbion and Sanofi Ventures led a $70 million B round.
The granite pipeline includes two antibodies, both developed in collaboration with the Versant Ridgeline Discovery engine in Basel, Switzerland. GRT-001, an inhibitor of autoimmune and inflammation drivers called monocytes, is being tested in a Phase 1A in healthy volunteers. Granite is scheduled to begin phase 1B testing in inflammatory bowel disease later this year. GRT-002 blocks interleukin-3, a signaling protein in the inflammatory pathway of itching and allergicity. Granite expects the program to enter the clinic in 2026.
– Biotech Company State Bio emerges from invisibility, revealing $12 million in funding and an AI Imaging platform technology for the development of cell therapies and regenerative drugs. The Palo Alto, California-based startup says that unlike the currently available cellular imaging technology, its platform allows scientists to monitor live cells, providing real-time insights without touching or harming them.
The solemn is founded by Frank Li, who gained machine learning experience from the alphabet printed cloth life science. Aix Ventures leads State’s seed financing, which the startup says will be used to expand its platform and develop an internal pipeline for stem cell-derived therapies for targets and signs.
– The groundbreaking startup (Etiome) is a startup that aims to seize the disease with drugs that intervene in the earliest stages of the disease. Applying supervised artificial intelligence to electronic health records and other data, Etiome characterizes the “biomass” of the disease and then discovers drugs that can address these time points. Etiome received $50 million in flagship support.
– Mannitin raised $115 million for placebo-controlled Phase 2B GLM101, an experimental treatment for the glycosylation of phosphorase 2-glycosylation, an ultra-rare disease enzyme deficiency. Instead of replacing the insufficient enzyme that gives the disease name, GLM101 replaces the compounds that are a key part of its enzymatic process. The new financing is Series C.
– Avidicure is for $50 million for multifunctional antibody drugs, aiming to leverage the innate and adaptive immune systems to fight cancer. Amsterdam-based Biotech says its drug is called AVC booster, exceeding the quality of currently available biopharmaceuticals. AVC-S-101, a lead project for the cancer protein Trop2, is developing non-small cell lung cancer and other solid tumors. Avidicure’s seed financing is led by EQT Life Sciences.
– Atovia treatments included $90 million to advance its two lead programs through clinical proof of concepts for chronic itching and atopic dermatitis. Biotech, based in San Carlos, California, calls its drug “poison,” a biopharmaceutical designed by specific properties. Deep Track Capital LED Attovia’s Series C financing.
– Metal Metabolic Disease Developer Imbria Pharmaceuticals closed at $57.5 million and was tested on Phase 2B via NinerafaxStat, an experimental treatment for non-irritating hypertrophic cardiomyopathy. The drug is an oral small molecule inhibitor of partial fatty acid oxidation, transferring heart preferences from fatty acids to glucose. This metabolic transfer is designed to improve cardiac function during rest and exercise. Preliminary data expected by the end of 2026. The Boston-based Imbria Series B financing is led by new investor Deep Track Capital.
– Immunology-focused Merida Biosciences launched for $121 million to support a pipeline led by antibody-like drugs in late stage development of Graves disease. Merida is composed of the Third Rock Enterprise. The company co-led the startup’s Series A financing with Bain Capital Life Sciences and BVF partners.
– Raythera, a company that develops small molecule drugs for immunologic applications, raised $100 million to push its preclinical pipeline to phase 1 testing. The company’s website lists three anti-inflammatory programs targeting undisclosed targets. Foresite Capital and Orbimed Advisor are jointly led by San Diego-based Biotech Series A financing.
– Neurona Therapeutics raised $102 million to push the cell therapy NRTX-1001 to the 3-stage test of epilepsy. The cells in NRTX-1001 are derived from human pluripotent stem cells and secrete the inhibitory neurotransmitter GABA silencing epileptic seizure activity.
– Solu Therapeutics raised $41 million in financing for drugs that bring antibodies and small molecules together to solve elusive drug targets. Lead Program STX-0712 is being tested on phase one of chronic spinal cord leukemia and other blood cancers. Boston-based Biotech’s program and platform technology has been licensed from GSK.
– Heparegenix completed €21.5 million (approximately US$24.3 million) financing to complete the ongoing Phase 1B trial and promoted to the company’s leading candidate for liver regeneration HRX-215 phase test. The drug is an oral small molecule targeting MKK4, a major regulator of liver regeneration. Inhibition of this enzyme is designed to enhance the liver’s natural regeneration capacity. After the second round of financing, Wellington’s partners joined the Biotech Investor Group in Tübingen, Germany.
– Atsena Therapeutics raised $150 million to support the ongoing 1/2 phase ATSN-2011 phase test, ATSN-201, a gene therapy for developing X-linked retina in visual disorders. New investor Bain Capital leads the Series C financing in Durham, North Carolina.
Photo: Devrimb, Getty Images
