Biotech venture capitalists are increasingly acting like bankers, prioritizing quick turnarounds and exits over long-term, risky drug development. This shift, driven by a sharp decline in sector fundraising from a peak of $152.3bn in 2018 to $12bn in 2024, means VCs are focusing on assets with proven scientific or clinical validation, often acquired from Big Pharma or licensed from China.

Instead of building new companies, VCs are now more focused on the asset itself, moving it forward with lean operations. Early-stage deals have decreased significantly, with capital now being deployed later in the development cycle. This model prioritizes execution and technical aspects over the team, clinical need, or potential impact of a breakthrough.

While academics with novel technology may still receive funding, entrepreneurs with truly novel ideas seeking seed capital face challenges. This trend risks stifling genuine innovation, as the most profound medical advancements often emerge from long-term academic research and require patient capital and optimism from both backers and entrepreneurs.