The numbers for first quarter 2025 biotech financings are in and they show a downturn in investments.
A total of $6.5 billion was raised in the first quarter compared to $8.1 billion in the same period in 2024, according to figures tallied by data analytics company GlobalData. The firm counted 162 venture capital investments in the quarter, down 9% compared to the first quarter of 2024. The top therapeutic area was oncology, which accounted for 76 deals by 217 investors.
In its report, GlobalData said the declines suggest that raising venture capital financing remains challenging. The firm added that the current environment mirrors similar downturns in 2022 and 2023, with investors continuing to favor later-stage companies that have clinical data.
“The higher deal values for late-stage firms underscores a distinct realignment of investor risk appetite – a trend observed since 2024,” GlobalData analyst Alison Labya said in a prepared statement. “Amid the ongoing macroeconomic uncertainty, venture capitalists are favoring opportunities with clearer routes to near-term revenue and market access over longer-horizon development risks.”
The second quarter of 2025 kicked off with several large rounds of financings raised by companies in late-stage development. But new companies emerging from stealth showed they were also able to attract interest from venture capital investors. Here’s a recap of financing news from the past month:
—Granite Bio emerged from stealth announcing $100 in financing, but it’s not all new money. The cash breaks down to a $30 million Series A round led by founding investors Versant Ventures and Novartis Venture Fund. Forbion and Sanofi Ventures led a $70 million Series B round.
Granite’s pipeline includes two antibodies, both developed in collaboration with Versant’s Ridgeline Discovery Engine in Basel, Switzerland. GRT-001, an inhibitor of drivers of autoimmunity and inflammation called monocytes, is in Phase 1a testing in healthy volunteers. Granite plans to begin Phase 1b testing in inflammatory bowel disease later this year. GRT-002 blocks interleukin-3, a signaling protein in inflammatory pathways in itch and allergy. Granite expects this program will enter the clinic in 2026.
—Biotech company Stately Bio emerged from stealth revealing $12 million in funding and an AI-imaging platform technology for developing cell therapies and regenerative medicines. The Palo Alto, California-based startup says that unlike currently available cellular imaging technologies that destroy a cell, its platform enables scientists to monitor live cells, providing real-time insights without touching or harming them.
Stately was founded by Frank Li, who brought machine learning experience from Alphabet’s Calico Life Sciences. AIX Ventures led Stately’s seed financing, which the startup said it will use to scale its platform and develop an internal pipeline of stem cell-derived therapies for targets and indications that remain undisclosed.
—Flagship Pioneering launched Etiome, a startup aiming to preempt disease with drugs that intervene at a disorder’s earliest stages. Applying supervised artificial intelligence to electronic health records and other data, Etiome characterizes “biostages” of disease, then discovers drugs that can address these temporal points. Etiome is backed by $50 million from Flagship.
—Glycomine raised $115 million to proceed to a placebo-controlled Phase 2b test of GLM101, an experimental treatment for phosphomannomutase 2-congenital disorder of glycosylation, an ultra-rare disease enzyme deficiency. Rather than replacing the deficient enzyme that gives the disease its name, GLM101 replaces a compound that’s a key part of its enzymatic process. The new financing is a Series C round.
—Avidicure launched with $50 million for multifunctional antibody drugs designed to tap into the innate and adaptive immune systems to fight cancer. The Amsterdam-based biotech says its drugs, called AVC Boosters, surpass the qualities of currently available biologic drugs. Lead program AVC-S-101, which targets the cancer protein TROP2, is in development for non-small cell lung cancer and other solid tumors. Avidicure’s seed financing was led by EQT Life Sciences.
—Attovia Therapeutics reeled in $90 million to advance its two lead programs through clinical proof of concept in chronic pruritus and atopic dermatitis. The San Carlos, California-based biotech calls its drugs “attobodies,” which are biologic drugs engineered with specific properties. Deep Track Capital led Attovia’s Series C financing.
—Cardiometabolic disease drug developer Imbria Pharmaceuticals closed $57.5 million to advance through Phase2b testing with ninerafaxstat, an experimental treatment for non-obstructive hypertrophic cardiomyopathy. The drug, an oral small molecule inhibitor of partial fatty acid oxidation, shifts the heart’s preference from fatty acids toward glucose. This metabolism shift is intended to improve cardiac function at rest and during exercise. Preliminary data are expected in late 2026. Boston-based Imbria’s Series B financing was led by new investor Deep Track Capital.
—Immunology-focused Merida Biosciences launched with $121 million to support a pipeline led by an antibody-like drug in late-preclinical development for Graves’ disease. Merida was formed by Third Rock Ventures. That firm co-led the startup’s Series A financing with Bain Capital Life Sciences and BVF Partners.
—RayThera, a company developing small molecule drugs for applications in immunology, raised $100 million to advance its preclinical pipeline to Phase 1 testing. The company’s website lists three anti-inflammatory programs addressing undisclosed targets. Foresite Capital and OrbiMed Advisor’s co-led the San Diego-based biotech’s Series A financing.
—Neurona Therapeutics raised $102 million to advance cell therapy NRTX-1001 to Phase 3 testing in epilepsy. Derived from human pluripotent stem cells, the cells in NRTX-1001 secrete the inhibitory neurotransmitter GABA to silence seizure activity.
—Solu Therapeutics added $41 million in financing for drugs that bring antibodies and small molecules together to address elusive drug targets. Lead program STX-0712 is in Phase 1 testing for chronic myelomonocytic leukemia and other blood cancers. The Boston-based biotech’s programs and platform technology were licensed from GSK.
—HepaRegeniX completed a €21.5 million (about $24.3 million) financing to complete an ongoing Phase 1b trial and to advance to Phase 2a testing of HRX-215, the company’s lead candidate for liver regeneration. The drug is an oral small molecule that targets MKK4, a master regulator of liver regeneration. Inhibiting this enzyme is intended to enhance the liver’s natural ability to regenerate. The second close of the financing added Wellington Partners to the Tübingen, Germany-based biotech’s investor syndicate.
—Atsena Therapeutics raised $150 million to support an ongoing Phase 1/2 test of ATSN-201, a gene therapy in development for the vision disorder X-linked retinoschisis. New investor Bain Capital led the Series C financing for Durham, North Carolina-based Atsena.
Photo: Devrimb, Getty Images
