Venture capital backs biotech's clinical push
Citing JP Morgan's Q3 2026 Biopharma Licensing and Venture Report, Preqin reports that global biopharma venture deals totaled $54.5 billion across 959 rounds from 2025 through Q3 2026, including $37.2 billion across 537 rounds in the US and $9.2 billion across 214 rounds in Europe including the UK. So far in 2026 there have been 68 rounds of $100 million or more and 80 rounds in the $50-99 million bracket, helped by an open IPO window, receptiveness to reverse mergers, and more M&A. Recent large rounds include Oxford-based OMass Therapeutics' £230 million series C, Matchpoint Therapeutics' $150 million series B, Boston-based Soufflé Therapeutics' $135 million series B, and Shanghai-based NeuShen Therapeutics' series B of more than $80 million. The piece also notes that China-based programs represented 51% of big-pharma licensing deals with upfront payments of at least $50 million this year as of September, up from 39% across 2025, and that APAC family offices active in private credit rose 47% between 2024 and 2026.
Highlights
global VC deals in the industry totaled $54.5bn across 959 rounds between 2025 and Q3 2026, including $37.2bn (537 rounds) in the US and $9.2bn (214) in Europe, including the UK
The investment bank says the sector has benefited from an open IPO window, investor receptiveness to reverse mergers, and more M&A.
China-based programs represented 51% of big-pharma licensing deals with upfront payments of at least $50mn this year (as of September), up from 39% across the whole of 2025.
Contrarian Viewpoints
- Large round sizes signal capital availability, not clinical success: most candidates in these rounds still face binary trial risk.
- The concentration of capital in $50 million-plus rounds may reflect selectivity toward a few favored platforms rather than broad sector health.
Investment Implications
- Stay constructive on clinical-stage biotech venture and crossover exposure while the IPO window stays open, favoring companies with near-term clinical milestones.
- Track China-origin drug assets as a growing share of global licensing, while monitoring geopolitical and regulatory friction that could slow cross-border deals.