Much has changed for biotech since the height of the COVID-19 pandemic
Crunchbase News reports that “biotech is in a weird place right now.” After two years of record investments, the sector is down experiencing the other side of the coin, something the author of this article characterizes as an “economic whiplash as investors leave the space and longtime venture firms turn down the funding tap.” The sector is seeing plummeting valuations, down rounds, and less-than-ideal exit strategies.
The article notes that “biotech is often referred to as a recession-proof industry. People who are sick will always need drugs, and it often takes a recession’s worth of time to get a drug to market. But as the global economic downturn causes the venture community to tighten their purse strings, the flourishing biotech startup ecosystem is struggling.” So much has changed from the height of the COVID-19 pandemic when investors threw money into the sector to today’s environment.