Later-stage financings dominate as global longevity investment shows signs of stability.
Longevity.Technology today published its Q2 2023 Longevity Investment Report, providing an overview of global longevity investment in the second quarter. Total financing in Q2 2023 increased slightly to $282 million (up from $233m in Q1) spread across 20 deals.
While longevity investment activity in Q2 2023 showed an improvement compared with Q1, it is still markedly lower than the $1.2 billion recorded in Q4 2022. Nonetheless, the report suggests the increase is an encouraging sign and indicates a level of stability in market activity.
Late-stage VC funding dominates
Early-stage venture capital dominated the 1st quarter of 2023, but in Q2 2023 late-stage VC accounted for the largest share of deals, representing 42% of the total. The report suggests this indicates a significant interest in mature longevity companies that have either progressed clinically or commercially.
While the United States continues to lead the way with most deals, other nations are now emerging as active participants. While the US had 93.9% share of financial activity in Q1 2023, this dropped to 73% in Q2 2023 as fundings in other regions increased. The report authors suggest that this “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.”
Optimistic for 2024
Following two years of record funding levels, 2023 has brought longevity investment back to earth with a bump. The first two quarters of the year have witnessed a significant decline in the longevity investment growth trajectory, reflective of the wider biotech investment winter. Despite the collapse of Silicon Valley Bank and Credit Suisse in March 2023, the market appears to be recalibrating and slowly correcting itself, as seen in the US S&P 500’s more consistent gains in the first half of 2023.
Looking ahead to Q3 and Q4, the report’s authors say it is difficult to predict with certainty the specific investment, deal trends and a range of possibilities that will emerge.
“When I speak with investors I get mixed messages,” said Phil Newman, founder and CEO of Longevity.Technology. “Many say that they think we’ve reached the end of the valuations route, but many are also not clear on when they’ll be deploying capital into new investments.
“On the whole, I think the market remains stuck, even though we’re seeing movement on deals. We’re heading into the summer season and then there’s only really September through November to close out 2023 investment rounds. I’m more optimistic for 2024 as inflation appears to be coming under control and employment and real estate are holding up.”