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Venture capital activity reached $115.3 billion in the first half of 2024, reflecting a slight decrease of 2% compared to the same period in 2023, according to LSEG. However, the number of completed VC deals saw a significant decline, with 9,070 transactions recorded, marking a 30% drop year-over-year. Investment in cell and gene therapy, once a booming sector, is now experiencing a downturn. This year, approximately $500 million has been raised across 16 venture rounds, which, when annualized, amounts to less than $8.2 billion—far below the peak of $8.2 billion from 121 deals in 2021. The decline in this sector is attributed to venture investors shifting focus toward technologies perceived as less risky and with more straightforward paths to market. Oncology continues to dominate biotech venture capital investments, but concerns are rising about market saturation and the industry's transition toward precision medicine, as pharmaceutical companies seek mega-blockbuster products.
