After a subdued August, September brought a noticeable surge in life sciences funding activity. BioTalent’s analysis of publicly available deal data shows that both the number of transactions and the total capital raised more than doubled month-on-month, marking the strongest fundraising performance seen in over two years. Whether this bounce represents a seasonal post-summer correction or the beginning of renewed investor confidence remains to be seen, but the sentiment shift was tangible.
Several clear patterns emerged across the month’s activity. AI and platform-based tech bio models dominated investment allocations, particularly in AI-integrated drug discovery, while gene editing also saw an increase in smaller-scale funding rounds. Neuroscience and psychiatry continued to attract a high proportion of capital, confirming sustained investor belief in areas of high unmet clinical need. Despite the increase in deal flow, capital concentration remained persistent, with a small group of leading funds, including OrbiMed, SR One and Novo Holdings, taking the lead on most of the largest transactions.
Among the biggest fundraisers of the month were Kriya Therapeutics, LB Pharmaceuticals, Lila Sciences, Odyssey Therapeutics and Crystalys Therapeutics, each representing the type of scalable, high-potential platform models currently favoured by top-tier investors.
While one strong month doesn’t confirm a long-term trend, September’s activity suggests that capital is once again flowing, but selectively. Investors are clearly back in the market, but they are backing platforms, not projects; scalability, not speculation. The firms that win in this environment will be those that can demonstrate both scientific conviction and commercial clarity.
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