While there was uncertainty throughout the startup sector, biotech had one of the most resiliant businesses. Due to their ongoing research and development into innovative new treatments and cures for various diseases, biotech startups saw a spike in interest from investors and customers who were optimistic about the future of healthcare technology.
This decline may be due to increased competition and saturation in the biotech market. Many startups have tried to enter the field, and some have failed. While this may lead to fewer deals being struck, it does not seem to be causing a slowing down of innovation or development in the biotech industry.
When it comes to the biotech industry, speculating on exact results is a risky endeavor. However, based on data from recent years, it seems as though startups are popping up more frequently than ever before. With this in mind, 2021 may well be yet another banner year for biotech deals.
Clearly, the rise in biotech deals continues apace in America, with median deal size reaching $33.5 million and median valuation climbing to $38 million in 2022. This demonstrates the heightened interest of investors in this promising industry sector, which is likely a result of continued innovation and growth across several therapeutic categories.
Many biotech investors point to several reasons why 2017 was a good year for the industry, despite many other sectors feeling the pinch from increased economic uncertainty. One reason is that biotech stocks are seen as safer bets, relative to other industries. Additionally, biotechs are often associated with more practical fields such as medicinal treatments and new product development rather than cutting-edge technology in sectors like semiconductors or Amazon Web Services. Finally, many believe that excitement surrounding certain newly discovered therapies or prospects can override any negative sentiment around the overall economy.
