Though deal volume has not returned to pre-pandemic levels, the average amounts raised in both Seed and Series A deals continue to confirm a trend toward increasing size, particularly at the Series A level. Blieden said there were some instances of particularly large recent Series A financings last year. In one notable example, Xaira Therapeutics raised a $1 billion Series A financing, which contributed to the rise in the overall average. “What we’ve seen in many cases is that a company has a well-established lead investor happy to contribute a normal, healthy amount, but because the company was able to secure that lead investor, the company is then able to raise a significant amount of capital from a variety of follow investors” Blieden said. Life science companies investing in AI also see rising investors’ interest. For example, the size of the round for Xaira was due in large part to the company’s emphasis on using AI in the drug discovery process.
Grant Thornton Valuation and Modeling Principal Oksana Westerbeke said proper analysis of this kind of data is essential for life sciences companies to take advantage of these indicators, as timing can be a crucial factor in a successful fundraising round. “For many Series A deals, we see the overall number of investors double or triple since the pre-pandemic averages.”
The flattening of the Series A deal size in the last half of Q4 and Q1 2025 could be of some concern to companies seeking venture capital and Blieden said if it continues further into 2025. It would represent a sizable shift from the five-year growth trend.
