The latest Life Sciences Snapshot report from Orrick, the global consulting firm, reviews key trends of venture investment in the sector during Q3 2022 along with a roundtable discussion on non-dilutive financing and how it can be a viable and valuable option for early stage life sciences companies.
Available for download here, the report highlights these key trends:
- The industry generated $6.2 billion in deal value across 352 deals in Q3, exhibiting further quarterly declines as punishing macroeconomic conditions continued. Year-to-date (YTD) deal value, however, remains higher than before the onset of the pandemic.
- Deal volume has continued to decline, with Q3 deal volume returning to pre-pandemic levels.
- Median deal sizes for Series A and Series D or later companies experienced material growth, but some other stages saw declines. Median pre-money valuations rose for both angel, seed and early-stage venture-backed companies but declined slightly for late-stage deals.
- Exit prospects remain unfavorable, with just $463.6 million generated across nine deals in Q3. In contrast to deal value, YTD exit value of $13.8 billion lags far behind the annual totals of previous years, including before the pandemic. Public market volatility continues to impact IPO candidates, and many have adopted a wait-and-see approach.