Early-stage equity raises for biotechs surged by 71% in Q3 2025, suggesting the funding freeze that has gripped the industry this year could be thawing.
Total venture financing deal value in the biotech industry reached $3.1bn in Q3 this year, up from $1.8bn from the same period in 2024, as per a report by GlobalData. Marking a 70.9% jump between the two quarters, the increase signals renewed investor confidence in innovation and growth prospects, according to analysts from GlobalData.
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Despite a lacklustre few years for the biotech investment scene, deals substantially recovered in 2024. At the time, investors were optimistic about 2025 and were even bullish about the potential of initial public offerings (IPO) as a raising avenue for biotechs. However, the upturn, which was in part fuelled by interest rate cuts, did not carry into Q1 2025.
US President Donald Trump – who assumed office for his second tenure in January – has implemented several policies that have brought macroeconomic instability to the global pharma industry amongst others. This includes wide-ranging tariffs, onshoring initiatives, and drug pricing reforms. There have also been vaccine policy shifts and mass layoffs at federal departments, creating further volatility within the US sector.
“The biotech industry saw a resurgence in deal activity in Q3 2025, though investors remain selective. Sustained investor confidence heading into 2026 will depend on the ability of the biopharmaceutical sector to mitigate Trump’s tariffs and drug pricing pressures, as well as the US Federal Reserve’s continued commitment towards interest rate cuts,” says Alison Labya, senior business fundamentals pharma analyst at GlobalData.
Financing in Q3 2025 is also up 36.7% from Q2 , reflecting strong intra-year growth. Kriya Therapeutics closed a notable venture financing deal, securing $320m in a Series D round for its pipeline of gene therapies in September. In the same month, Crystalys Therapeutics raised $205m in a launch backed by Novo Holdings for its gout treatment. Odyssey Therapeutics, which bailed on an IPO in June 2025, rebounded in September with a $213m Series D raise.
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By GlobalDataLabya adds: “Despite the ongoing challenges stemming from Trump’s policies and economic headwinds, investor confidence increased in Q3 2025 amid an uptick in merger & acquisition (M&A) activity, with a 36.7% increase in total deal value to $43.2bn in Q3 2025 compared to the previous quarter.”
There are early indicators that Q4 could continue the trend of ascendancy. In October, Kailera Therapeutics raised $600m in Series B financing to fund a Phase III trial of its promising weight loss drug. Kailera, one of the industry’s most closely watched private biotechs, debuted in October 2024 with a $400m Series A – one of the largest biotech launches in recent years. In the same week as Kailera’s Series B round, antibody-drug conjugate (ADC) specialist Tubulis completed a $361m Series C round.
GlobalData is the parent company of Pharmaceutical Technology.
