This edition of Orrick’s life sciences publication series reviews the key drivers of venture investment in the life sciences industry, which is proceeding at a record pace thus far in 2021. Key findings include:

Investment continues at a record pace. By midyear 2021, $25.3 billion of venture capital has been invested into US-based life sciences companies—a sum already higher than eight other years’ annual tallies since 2010.

The rising influx of capital has boosted deal metrics across all financing series.

favorable backdrop for investors, with initial public offering (IPO) sizes in particular surging to new records—$36.4 billion in aggregate exit value by midyear.

In any heady environment, there will be rightful calls for caution and rigor in investment processes. However, the rate of technical innovation and size of market opportunities can also justify significant investment.