This report series examines quarterly trends in life sciences venture investment. Key findings for Q1 2023 include:

• Life sciences VC deal value totaled $5.0 billion across 364 deals, representing a 40.9% decline in value from the previous quarter

• Deal size trends reflected challenges faced by late-stage companies, with the median deal sizes for both Series C and D down significantly since the end of 2022.

• Valuations were more resilient, and the median pre-money valuation grew 27.2% for the angel and seed category and 24.6% for the late-stage VC category. The median valuation for early-stage VC declined 19.4% in the same period but remains relatively high compared to historical levels.

• Exit activity reached $1.3 billion across 25 deals in Q1. Exit activity remains low after a precipitous decline between 2021 and 2022, and Q1 2023 demonstrated the lowest quarter for both deal value and count. Public market downturn began in early 2022.