Biotech venture funding falls to $2.3 billion in Q3, Avant Bio says
XLV•Life sciences venture funding fell to $2.3 billion across 64 deals in Q3 2026, from $4.1 billion across 132 deals in Q2. Later-stage rounds accounted for about 95% of Q3 funding.
1. Funding concentrates later
Average deal size rose to roughly $36 million as investors concentrated capital in fewer platforms with clinical or commercial traction. Later-stage rounds attracted about $2.1 billion, while seed and early-stage investment reached five-quarter lows.
2. M&A also declines
Mergers and acquisitions totaled roughly $3.1 billion across 19 deals, down from $9.8 billion in Q2 despite broadly stable deal volume. Strategic buyers targeted consumables, manufacturing capacity and data services; manufacturing platforms faced greater pressure to demonstrate commercial-scale performance.
