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Edging ahead in Q2 but still held back:

Q2 2023: longevity investment report

Table of Contents:

Summary

What’s new in Q2?

Deal watch: Monitoring trends

Longevity: A global network

Later stage VC picks-up

Longevity: a decade of growth and opportunities

Outlook for longevity

Phil Newman

Editor-in-chief
Longevity.Technology

Christine Belleza

Scientific writer
Market Intelligence Unit, Longevity.Technology

Total financing for Q2 2023: $282 million
Number of deals: 20
Top financing location: USA

The longevity market encompasses a broad range of products, services and technologies with the mutual aim of improving and extending human lifespan.

2021 emerged as the peak year for longevity investment, recording a total financing of $7.65b. 2022 also saw substantial financing of $6.94b, mostly attributed to Jeff Bezos’ purported investment of $3b into Altos Labs.

The first two quarters of 2023 have witnessed a significant decline in the longevity investment growth trajectory, the second half of the year continues with uncertainty – when will we witness an upswing? Nobody can say with any degree of certainty, as global events continue to affect positivity (war, interest rates, consumer spending, etc).

This report aims to provide key insights into the investment activity within the longevity market and serve as a valuable resource for industry players, investors and entrepreneurs seeking to navigate and capitalize on this exciting sector.

Q1 2023 witnessed a total financing of $233m, which is a notable decrease compared with Q4 2022, which recorded a financing of $1.218b. Since Q2 2022, the overall longevity investment landscape has reflected the wider biotech winter.

On the other hand, total financing in Q2 2023 increased to $282m. While Q2 2023’s financial activity showed an improvement compared with Q1 2023, it is still markedly lower than Q4 2022. Nonetheless, it is an encouraging sign and indicates a level of stability in market activity. Q2 2023 also saw a slight uptick in deal activity with 20 deals.

The summer period in Q3 may impact the longevity market’s financial activity due to vacation periods and reduced business activities. According to Jeff Hirsh, market technician and editor-in-chief of the Trader’s Almanac, summer months historically see market dips as investors take vacations and adjust their strategies which potentially lead to decreased investment and deal activity. But it is also important to note that outcomes may vary based on regional differences and market dynamics.

Though quarterly reports provide insights into the performance of the longevity market, it is crucial to recognize that financing can fluctuate between quarters due to factors like investment cycles, market conditions, and shifts in investor sentiment. Therefore, it is important not to interpret the performance of a single quarter as indicative of long-term trends.

Total financing by quarter (Q1 2022 – Q2 2023)

Figure 3. Longevity companies financing activity by quarter from Q1 2022 – Q2 2023 in $bn. Deal types included in the analysis are: Accelerator/Incubator, Angel, Corporate, Early Stage VC, Later Stage VC, Equity Crowdfunding, IPO, PE Growth/Expansion, PIPE, Public Investment 2nd Offering, and Seed Round. Analysis by Longevity.Technology, according to Pitchbook data as of the 30th of June 2023, based on 579 companies.

Number of deals by quarter (Q1 2022 – Q2 2023)

Figure 4. Longevity companies and number of deals by quarter from Q1 2022 – Q2 2023. Deal types included in the analysis are: Accelerator/Incubator, Angel, Corporate, Early Stage VC, Later Stage VC, Equity Crowdfunding, IPO, PE Growth/Expansion, PIPE, Public Investment 2nd Offering, and Seed Round. Analysis by Longevity.Technology, according to Pitchbook data as of the 30th of June 2023, based on 579 companies.

Q2 financing over the past 10 years

Figure 5. Longevity companies financing activity by Q2 2013 – 2023 in $bn. Deal types included in the analysis are: Accelerator/Incubator, Angel, Corporate, Early Stage VC, Later Stage VC, Equity Crowdfunding, IPO, PE Growth/Expansion, PIPE, Public Investment 2nd Offering, and Seed Round. Analysis by Longevity.Technology, according to Pitchbook data as of the 30th of June 2023, based on 579 companies.

Like Q1 2023, the US remains to be the leading country with the most deals. The United States, which initially had 93.9% share of financial activity in Q1 2023, eventually adjusted to 73% in Q2 2023 as other players came in. On the other hand, the United Kingdom, which only had 0.3% share of financing activity in Q1 2023 increased to 14% in Q2 2023.

Australia, a newcomer on the scene with companies in their earlier stages, rolled in with a 7% share of financial activity. Europe, which initially had 5.5% share of financial activity in Q1 2023 dropped to only 4% in Q2 2023. Additionally, Japan, which was not initially on the list of countries with the most deals in Q1 2023, eventually came in 5th place in Q2 2023, with a financial activity of 2%. The same is true with Canada, which was initially not on the list in Q1 2023, but came through with a financial activity of 0.20% in Q2 2023.

While the United States has traditionally served as a hub for numerous longevity companies, other nations are now emerging as active participants. Notably, Australia, select regions within the Middle East, like Saudi Arabia, Canada and India are among the countries taking strides towards embracing and fostering longevity initiatives. This diversified engagement across borders underscores the widespread recognition of the potential and significance of longevity advancements, transcending geographic boundaries and fostering a collaborative, global pursuit of prolonged health and well-being.

Deals by location (Q2 2023)

Figure 7. Longevity companies financing activity by location in Q2 2023 as percentage of total. Deal types included in the analysis are Accelerator/Incubator, Angel, Corporate, Early Stage VC, Later Stage VC, Equity Crowdfunding, IPO, PE Growth/Expansion, PIPE, Public Investment 2nd Offering, and Seed Round. Analysis by Longevity.Technology, according to Pitchbook data as of the 30th of June 2023, based on 579 companies.

Late-Stage VC dominated the deals for the 2nd quarter of 2023, in comparison with Early-Stage VC which dominated the 1st quarter of 2023. Late-Stage VC accounted for the largest share of deals in Q2 2023, representing 42% of the total, which indicates a significant interest in mature longevity companies that have either progressed clinically or commercially. Aside from this, 24% of the total accounted for Early-Stage deals, indicating ongoing support for longevity startups that show promise and emerging companies in their initial phases. Seed round deals represented 6% of the total.

Private investment in public equity (PIPE) is when an institution or an accredited investor buys stock directly from a public company below market price. PIPE deals constituted 14.44% of the total, which shows a number of companies operating within the longevity sector sought funding at lower valuation. Additionally, Public Investment 2nd Offering accounted for 14% of deal value.

Deals by stage (Q2 2023)

Figure 8. Longevity companies financing by deal type in Q2 2023 as percentage of total. Deal types included in the analysis are: Accelerator/Incubator, Angel, Corporate, Early-Stage VC, Late-Stage VC, Equity Crowdfunding, IPO, PE Growth/Expansion, PIPE, Public Investment 2nd Offering, and Seed Round. Analysis by Longevity.Technology, according to Pitchbook data as of the 30th of June 2023, based on 579 companies.

The longevity market’s financing landscape has shown notable fluctuations and growth over the past decade. In 2013, the total financing amounted to $0.5b, indicating a relatively modest level of investment. However, there was a significant surge in 2014, with the total financing amounting to $4.07b.

From 2015 to 2020, the market experienced a mix of ups and downs, with fluctuating financing figures. While 2015 received a sizable total financing of $3.80b, 2016 and 2017 dropped off with a financing of $1.59b and 1.63b respectively: not our first rodeo.
2018 ended on a more promising note, with a substantial financing amount of $3.22b. In contrast, 2019 concluded with lower financing, totaling $2.89b. Overall, 2015-2020 served as a consolidation phase for the industry, paving the way for more substantial growth and investment in these more recent years.

In 2021, a remarkable milestone was achieved in the longevity market, as total financing soared to an impressive $7.65b, affirming its significant progress. While 2022 concluded slightly below the previous year’s record, with total financing amounting to $6.94 billion, it still stood as a significant achievement, underscoring the market’s optimism. Despite Silicon Valley Bank’s (SVP) and Credit Suisse’s collapse in March 2023, the market appears to be recalibrating and correcting itself slowly but steadily as seen in the US S&P 500’s more consistent gains in the first half of 2023.

Annual total financing in the last 10 years
Figure 1. Longevity companies financing activity 2013-2022 in $bn. Deal types included in the analysis are: Accelerator/Incubator, Angel, Corporate, Early-Stage VC, Late-Stage VC, Equity Crowdfunding, IPO, PE Growth/Expansion, PIPE, Public Investment 2nd Offering, and Seed Round. Analysis by Longevity.Technology, according to Pitchbook data as of the 30th of June 2023, based on 579 companies.
Number of deals in the last 10 years
Figure 2. Longevity companies and number of deals 2013-2022 in $bn. Deal types included in the analysis are: Accelerator/Incubator, Angel, Corporate, Early-Stage VC, Later Stage VC, Equity Crowdfunding, IPO, PE Growth/Expansion, PIPE, Public Investment 2nd Offering, and Seed Round. Analysis by Longevity.Technology, according to Pitchbook data as of the 30th of June 2023, based on 579 companies.

The wellness sector has evolved, expanding beyond physical health to include mental, emotional, and holistic well-being. The next frontier is longevity, driven by several compelling reasons.

  1. Increasing lifespan and awareness of wellbeing: the correlation between the wellness sector and human longevity is becoming closely intertwined, as they share a common goal of promoting and enhancing overall well-being for individuals to live longer and healthier lives.
  2. Global collaboration and investment: considering the current trajectory and how the longevity market has become in the last decade, financial inflow is anticipated to persist and accelerate further. Newer players are recognizing the potential of the longevity industry, such as Retro Biosciences, and established players such as Juvenescence are accelerating developments with the help of AI. Robin Lauber, the Chairman and CEO of Infinitas Capital highlighted in an interview with Longevity.Technology’s Deputy Editor, Eleanor Garth that: “Longevity is the biggest investment opportunity of our time and will radically change the way of pharma”.

    The complexity and interdisciplinary nature of the longevity market will drive greater collaboration among stakeholders, inevitably foster innovation and drive market expansion.
  3. A growing interest in preventative care: prevention is indeed better than cure, a widely acknowledged adage in the healthcare sector. Emphasizing proactive measures to prevent illness and promote well-being is recognized as a cornerstone of modern healthcare practices. By focusing on prevention, individuals and healthcare systems mitigate the burden of disease, improve overall health outcomes and enhance quality of life.
  4. Demographic change: an aging population brings significant economic challenges, including rising healthcare costs and a diminishing workforce. Promoting longevity and good health enables extended workforce participation, decreased strain on labor resources and enhanced individual well-being. Longevity and good health also ensures a vibrant future amidst declining birth rates and the consequent reduction in tax earners, which is prevalent in most Western countries.
  5. Technological frontier: human ingenuity has brought about many scientific breakthroughs such as gene editing, AI-based discovery and diagnostics and personalized medicine which can all help in our understanding of aging and help extend human lifespan.

    Artificial intelligence (AI) is a hot topic in 2023 (ChatGPT aside); AI can efficiently analyze vast amounts of data, extract patterns, identify correlations and detect subtle relationships that humans may overlook. AI algorithms can also generate sophisticated predictive models based on large datasets, enabling precise treatment predictions and personalized medicine approaches, as well as optimizing drug discovery by efficiently screening and analyzing vast libraries of chemical compounds. By harnessing AI’s computational power and analytical capabilities, researchers and clinicians can gain deeper insights, make more informed decisions and drive innovations that can accelerate stem cell research, precision medicine and diagnostic testing which can pivot the longevity industry faster than humanly possible. Here are some articles from Longevity.Technology related to AI: Putting AI to work in cryopreservation, Transformer-based aging clock provides insights into aging and Biolytica scoops $5.8 million to build out revolutionary AI-driven longevity platform.

    All of humanity has one thing in common – we all age. Currently, the desire for healthy aging is already leading to increased consumer demand and adoption of longevity supplements and services. Though still in its infancy, the longevity industry is poised for exponential growth as new developments make their way from labs to consumer markets.
  6. The longevity market represents a promising and dynamic landscape, offering significant opportunities for industry players and stakeholders. It is also set to experience an upward trend driven by incoming investments, a growing number of industry players, and a dedicated community of scientific researchers determined to unravel the mysteries of human aging and to leverage that knowledge to cure aging-related diseases (such as Alzheimer’s, cardiovascular disease, diabetes, sarcopenia and Parkinson’s), elevate and improve quality of life, extend lifespans and improve healthspans.

    Inevitably, challenges such as regulations imposed by governing bodies, technological limitations and the need for robust clinical evidence will drive the need for ‘patient capital’.

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