Fintech revival: Large deals are leading a resurgence in the retail fintech sector. We explore that sudden shift and spotlight the cross-border remittances space in our premium research. Read a free preview.
Rise of European megafunds: We're on pace for another record year for Europe's biggest PE funds—but these vehicles are taking longer to close. Our research analyzes megafund activity and performance. Read it here. | | | | | |
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| Gene-editing tech, AI platforms help drive biopharma innovation | | The following is an excerpt from our new Biopharma Report. It has been edited for length and clarity.
The biopharma sector showed strength in Q2, with venture funding reaching $9.2 billion across 215 deals. That's up from $7.4 billion across 196 deals in Q1 and marks the highest level since Q2 2022.
However, exits declined to $4.5 billion across 15 deals, down from $10 billion across 24 deals in Q1.
The overall M&A cycle has slowed, possibly due to depleted cash reserves, loaded pipelines, or a shift toward advancing startups rather than selling them. For example, Eli Lilly had multiple billion-dollar acquisitions in previous quarters, including Mariana Oncology, DTx Pharma, and Versanis Bio, which may slow down future acquisitions.
Similar large acquisitions for antibody-drug conjugate and radiopharma technologies may have depleted cash reserves as the drugs move into clinical trials.
On the investor end, it might be wiser to push startups to generate greater clinical data before attempting to sell or to establish themselves as enduring companies after an IPO.
This might be the case for the emerging obesity treatment startups competing with the current GLP-1 leaders with assets of similar mechanisms of action licensed from Asia, as they may be profitable in the long term if they do not exit to Big Pharma players.
Emerging technologies and therapeutics continued to drive innovation and attract investment in Q2. The CRISPR therapy market is experiencing rapid growth, with substantial investments and partnerships forming between biotech companies and pharmaceutical firms.
Oncolytic virus therapy is another area gaining traction, with trends shifting toward intravenous delivery methods, combinations with immune checkpoint inhibitors, and targeting rare cancers and specific cancer markers such as HER2 for increased precision.
Looking ahead to the remainder of 2024, the market appears stable for deal activity, though exits have slowed. The potential lowering of interest rates could improve funding conditions, but the implementation of the BIOSECURE Act may disrupt trends as China outsourcing becomes a growing concern for leading companies.
Other key areas to watch include AI platforms, with anticipation building for exits among first-generation companies, and the obesity treatment sector, which is poised for disruption from startups.
While overall venture funding is reaching new heights, challenges in the exit landscape persist, including slow M&A activity and unfavorable public valuations, making it difficult for companies to find suitable exit opportunities.
PitchBook clients can access our full Biopharma Report. Non-clients can download a free preview.
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| A message from PitchBook Data | | |
| 2024 advertising opportunities with PitchBook | | Clients trust PitchBook Media for top-tier ad placements in our seven specialized newsletters that connect with 2.1 million highly engaged PE and VC professionals. Backed by our robust global market data, we craft custom research reports and amplify clients' existing thought leadership through partnerships on PitchBook's asset class reports or native sponsored content columns.
Explore our Media Kit for more information or email us at mediasales@pitchbook.com. | | | | | | | |
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Farm Management Software Market Overview
The market for farm management software is ripe with opportunities, including the wider adoption of AI.
VCs are investing in a variety of tech specialists in the space—with $4.3 billion spread across 505 deals since the start of 2021.
|  | | Click to access the full market map. | | | |
New AI tech is poised to help increase the accuracy of predictions for crop yields, livestock health, planting schedules, and more.
Our analyst note unearths the companies enabling the world's farmers:
Read the free research
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European VC Valuations Report
Europe's early-stage market continued to see growth in median valuations during H1, while recovery in price tags for more mature startups has been slower.
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The overall value of the region's unicorns reached an all-time high, driven in part by AI's momentum.
Exit valuations have also improved—and we expect the outlook for European VC will only get better:
Read the free report
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France Market Snapshot
French private market activity strengthened in the second quarter, with increases in both PE and VC deal value. Total exit value also rose for the two strategies.
The French economy grew by 0.3% in Q2, putting the country on track to reach its target of 1% for the year. Our report dives into both public and private market trends:
Read the free report
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Medtech Report
VC dealmaking in the medtech industry dipped in Q2, but activity is still on track to surpass last year—and exits are on the rise.
Our report unpacks the data and identifies opportunities in the heart arrhythmia and sepsis testing sectors:
Read a free preview
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Clean Energy Report
VC dealmaking in the clean energy market during H1 was roughly in line with the same period in 2023, but the alternative energy storage sector surged in Q2—notching over $582 million across 16 deals.
Our new research digs into the increased need for energy storage, highlighting companies like Highview Power:
Read a free preview
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A reminder of upcoming events:
Sept. 9-11: We'd love to meet you at IPEM in Paris, an event for PE dealmakers that will feature 6,000 attendees representing 2,000+ firms, including 1,200 LPs and 1,000 GPs. We're also sponsoring the Private Debt Summit during the conference. More details here.
Sept. 11-12: Join us at the BVCA Summit in London, an event for private capital fund managers, institutional investors, pension funds, and family offices. LPs can register here; GPs and others can request to register.
Sept. 17: Our Tech Talks series continues with HydroX AI founder and CEO Zhuo Li on security, privacy, and copyright issues related to large language models. Research and testing may be key. Register here.
Nov. 5-8: Come see us at SuperInvestor 2024 in Monaco. The event will feature 1,000+ senior LPs and 1,500+ GPs, offering more opportunities than ever to make industry connections. Register here.
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Our insights and data featured in the press: - The $13 billion borrowed to buy Twitter has turned into the worst merger-finance deal for banks since the financial crisis. [WSJ]
- Are continuation funds losing their allure? [Institutional Investor]
- In Q2, 90% of M&A transactions of US VC-backed companies were undisclosed. [TechCrunch]
- The medtech sector may be through its recent dry spell. [Fierce Biotech]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team.
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More of our recent research (* - report preview):
Market updates
Thematic research
Industry & tech research
Coming next week (subject to change) - US Public PE Roundup
- Enterprise SaaS Report*
- Healthcare Funds Report*
- Exit Alternatives for VC
- VC Returns by Series
- Micro Mass Transit
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| | Since yesterday, the PitchBook Platform added: | | 462 Deals | 2046 People | 520 Companies | 13 Funds | | | | | | |
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