Banker & Tradesman: VC Funding for Bay State Biotechs Dropped 36 Percent

Jan 13, 2023

By Steve Adams, Banker & Tradesman Staff

This article originally appeared in Banker & Tradesman on January 12, 2023:

A major source of funding for Massachusetts life science companies dropped sharply in 2022, but still exceeds pre-pandemic investment levels.

Industry group MassBIO said Bay State life science companies received $8.7 billion in venture capital funding in 2022, down 36 percent from 2021 but still the second-highest level in history.

“The trendlines are pointing toward investors looking more cautiously and over a longer time horizon,” said Kendalle Burlin O’Connell, CEO of MassBio. 

Venture capital investment is spreading to a broader group of communities, reflecting the expansion of life science development throughout Greater Boston and central Massachusetts in recent years.

Companies in Cambridge received 49 percent of all VC funding, down from 58 percent the previous year. Boston’s recent lab development boom contributed to an increase in VC funding to companies in the city, which received 23 percent of the statewide share, up from 17 percent. Waltham, Watertown and Bedford rounded out the top five communities.

Read the full story at Banker & Tradesman.

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