Life Sciences Snapshot – Q4 2024 – A Quarterly Report on Financing Trends

Since the last Life Sciences Snapshot, Q3 dealmaking has brought 2024 life sciences VC activity close to 2023 levels, signaling a potential end to two years of decline. This edition highlights Q3 2024 investment trends and features a healthtech roundtable on regulation, investment, and strategy in a changing market.

Key findings include:

• Deal sizes and valuations: Median early-stage deals rose to $10.6M in Q3, up from $10.1M in Q2 and well above 2023’s $7.7M. Venture-growth valuations peaked at $115M YTD, reflecting increased investor risk appetite.
• Check size inflation: Deals over $25M now represent 84.3% of 2024’s total deal value, compared to 78.1% in 2023, with $100M+ checks also increasing. Pharmaceuticals and biotech, particularly in drug discovery, are driving this trend.
• Exit activity: While Q3 exits lagged historical averages, YTD exits reached $34B across 83 deals, surpassing 2023 levels and maintaining post-pandemic growth momentum.