Amid a prolonged slowdown in funding for biotechnology startups, corporate venture firms have emerged as key investors. Companies like Novo Holdings, Eli Lilly, and Sanofi Ventures have become increasingly active in backing privately held biotech firms. Novo Holdings led 18 private venture rounds in 2025, while Eli Lilly and Sanofi Ventures each participated in 13, highlighting their significant role in the sector. Corporate venture arms, often linked to pharmaceutical giants, provide a steady source of capital, allowing them to adopt long-term investment strategies. This trend is crucial as drug development costs rise and startups face challenges like regulatory uncertainty and competition from China’s biotech scene. The presence of corporate investors can enhance a startup’s appeal to other financiers, often seen as a validation of the company’s scientific potential. Despite the benefits, there is a risk that corporate venture interests may shift with changes in their parent company’s strategy. However, these investors maintain a focus on unmet medical needs and promising scientific advancements.
Are corporate venture firms stepping up for drug startups amid biotech funding challenges?
