TLDR:
- Health and biotech startups are receiving the majority of US Series A funding in 2024.
- Biotech and health companies have secured $5.6 billion across 110 Series A rounds, accounting for 53% of all funding at this stage.
In 2024, biotech and health startups are dominating Series A funding in the United States, pulling in a significant portion of the investment. While these companies do not account for the majority of deals, they are securing a substantial amount of capital in supergiant rounds. For example, Xaira Therapeutics, a San Francisco-based biotech company utilizing AI for drug discovery, received over $1 billion in funding in April. Mirador Therapeutics, focusing on precision medicine, secured $400 million in a Series A round in March. Biotech and healthcare companies are also leading the way in mega funding deals, with 38 such financings of $100 million or more going to these sectors. While the health and biotech sectors are thriving in terms of funding, other tech startups are receiving a smaller portion of Series A financing. This trend may pose challenges for seed-funded companies looking to raise their next round of capital. The data suggests that generative AI companies are attracting a significant amount of the remaining Series A funding, leaving less available for startups in other sectors. As the investment landscape evolves, it will be interesting to see how investors allocate resources to early-stage companies across different industries.
