March 4, 2021 (CAMBRIDGE, MA) – The Massachusetts Biotechnology Council (MassBio®) today released its 2020 Massachusetts Biopharma Funding Report, which shows that the Massachusetts biopharma industry experienced its best funding year on record. In 2020, venture capital investment in Massachusetts-based companies reached $5.8 billion, surpassing 2018’s previous record high of $4.8 billion.
In addition, 21 Massachusetts-based biopharma companies went public in 2020, a 110% increase from 2019, totaling $3.9 billion raised by IPO. These Massachusetts-based companies accounted for 32% of all United States-based biopharma IPOs by volume. Additionally, two Massachusetts-based biopharmas went public through a special purpose acquisition company (SPAC) merger in 2020, representing 50% of all United States-based biopharma SPAC mergers in 2020.
“At a time when the world was struck by a global public health crisis, the biopharma industry responded swiftly and demonstrated its value by creating highly effective vaccines in record time and developing therapeutics and diagnostics to protect patients from a novel virus,” said Kendalle Burlin O’Connell, President and COO, MassBio. “As this report shows, the industry’s unwavering commitment to patients and public health has generated enormous confidence in biopharma’s R&D abilities, even beyond the pandemic, leading to unprecedented levels of investment across the industry. The Massachusetts biopharma industry is changing the lives of patients every day. With continued support, these companies can continue to make the impossible possible.”
The report also found that Massachusetts’ leadership in the life sciences continues to expand beyond the Boston/Cambridge epicenter, as the state’s mini-clusters gain a stronger foothold within the industry. More than 50% of Massachusetts-based biopharma companies that received VC funding in 2020 were located outside of Cambridge, and nearly 40% of Massachusetts-based biopharma companies that went public were located outside of Cambridge.
The 2020 Massachusetts Biopharma Funding Report is a supplement to MassBio’s annual Industry Snapshot released in August and is produced in partnership with Evaluate®, the premier source for commercial analysis of the pharma and biotech sector.
Download the full 2020 Biopharma Funding Report here.
For media inquiries, contact Caroline Pepek.