Life Sciences Snapshot – A Quarterly Report on Financing Trends – Q1 2022

This edition of Orrick’s life sciences publication series reviews the key drivers of venture investment in the life sciences industry, which saw numerous records set in 2021 across multiple metrics.

Key findings include:

• Even after the staggering level of investment in the US in life sciences during 2020, 2021 notched even greater heights across both financing volume and value, hitting $47.0 billion over 2,000+ transactions - a 35% jump YoY. 
• Drivers of this mammoth swell in activity include record fundraisings across the spectrum from early-to-growth, an abundance of private capital and record rises in public equities. 
• Subsegments tied to the COVID-19 pandemic continue to enjoy active investor interest, leading to new highs in median financing sizes and pre-money valuations – between 2020 and 2021, medians jumped from $29 million to $40 million. 
• Liquidity for venture-backed life science companies, primarily propelled by a record 100+ public listings, hit an all-time high in 2021, supporting record investment rates. Well over $93 billion was accrued in exit value across 235 completed M&A transactions and public market debuts.