A chill on fundraising activity that began in 2022 persisted through the end of the 2023 calendar year. Over 40% of 2023’s aggregate financing dollars can be attributed to a private placement by Compass Pathways, which brought in $125m.
The 2024 calendar year, however, got off to a roaring start with a small crop of substantial rounds in Q1.
Lykos Therapeutics (formerly MAPS PBC) kicked off the year by announcing a $100m+ Series A (see MAPS PBC Closes $100m Series A, Rebrands to Lykos Therapeutics). That momentum continued as both Cybin and MindMed raised substantial sums via public offerings on the back of FDA Breakthrough Therapy Designation announcements (see Cybin Scores Breakthrough Therapy Designation for Deuterated Psilocybin Analog in MDD…; FDA Hands MindMed’s LSD Candidate Breakthrough Therapy Designation in Generalised Anxiety Disorder).
While valuations were markedly more modest than those seen a few years ago, the advent of these substantial rounds has been seen as a welcome signal for investors and operators alike.
The momentum from Q1 2024 was not quite sustained in Q2, however, with aggregate investment dropping to just over $175m. That’s nothing to be sniffed at, however, as the last time we saw a quarter with this level of investment—aside from Q1—was Q4 2022.
Q2 2024 included several notable rounds, such as Reunion Neuroscience’s $103m Series A (see Reunion Neuroscience Gets a New Lease of Life with $103M Series A to Fund Phase 2 Studies of 4-HO-DiPT Prodrug, but also Tempering Excitement Around Recent Raises); Gilgamesh’s deal with AbbVie which included a $65m cash injection (see Breaking: AbbVie Inks Deal with Gilgamesh Pharmaceuticals); and Psylo’s first close on a seed round (see Mini Interview: Joshua Ismin, Psylo).
Q3 saw a further chill on new investment, however. Read our analysis.
Q1’25 saw funding flow once more into the field, though that was dominated by rounds from three publicly-traded drug developers. Q2’25 saw the return of major private financings, with Lykos Therapeutics’ $50M Series B punctuating the quarter. Still, aggregate inflow was much lower than that seen in the first quarter.
Aggregate inflow was again depressed in Q3’25, despite a substantial increase in investor optimism.