This year, biotech and healthcare startups are receiving the majority of U.S. Series A funding for the first time, according to Crunchbase. So far in 2024, these sectors have raised around $5.6 billion across 110 Series A rounds, accounting for 53% of all such funding. This strong performance contrasts with overall Series A funding, which, while slightly above last year’s totals, remains lower than in 2022 and significantly below the record levels of 2021.

Interestingly, biotech and health companies are not securing more rounds but larger ones. They constitute less than a third of this year’s Series A deals but dominate in “supergiant” rounds. For instance, Xaira Therapeutics and Mirador Therapeutics raised $1 billion and $400 million, respectively, in large Series A financings.

Large biotech funding rounds often come in tranches linked to milestones, with many startups going public before Series B or C rounds. This trend is in stark contrast to tech startups, which are seeing less Series A funding as more investment flows to biotech and hot sectors like generative AI.

Looking ahead, the remainder of 2024 is likely to see continued strong investment in biotech and healthcare startups. We may see more biotech firms pursuing IPOs earlier, bypassing later-stage venture rounds. Also, competition for Series A funding in other tech sectors may intensify. The focus on health and biotech indicates a robust future for these fields, driven by ongoing innovation and investor confidence in their long-term potential.