25 January 2025 – January opened strong for private biotech investment, as North American firms collectively raised $1.995 billion across 17 funding rounds—a clear vote of confidence despite broader IPO and market volatility—according to Labiotech’s January funding tracker. Europe followed with $978 million from 11 rounds, while Asia-Pacific recorded a notable $50 million Series C raise from Shenzhen-based TargetRx.

Oncology and Obesity: The Top Attractions

Oncology startups led the way, drawing in approximately $507 million across a range of early- and mid-stage companies. This remains one of the most active investment areas given the persistent high unmet need in cancer care and ongoing innovation in antibody-drug conjugates, CAR-T therapies, and immuno-oncology platforms.

The obesity sector was the second-highest funded therapeutic area in January, raising around $475 million. Much of this activity was fueled by a single large round for Verdiva Bio, underscoring the sector’s momentum following recent successes of GLP-1 agonists and other metabolic therapies. The level of investment also reflects the strong and growing market demand for novel obesity treatments.

Funding Landscape Overview

While North America commanded nearly $2 billion, Europe’s biotech ecosystem continued to demonstrate resilience with just under $1 billion raised across 11 deals, showing strong appetite for companies working on platform technologies and specialty therapeutic areas. In contrast, Asia-Pacific’s participation was smaller in dollar terms, with TargetRx’s $50 million Series C standing out as the key financing event of the month. This regional imbalance highlights both the maturity of North American and European biotech hubs and the untapped growth potential in Asian markets.

Strategic Implications

This surge in activity comes amid a backdrop of more cautious public capital markets, where IPO activity has slowed significantly. Venture capital, however, remains steady and strategic. Notably, a majority of January’s funding came through Series A rounds—representing 56.4% of the total capital deployed—indicating that investors are still eager to back promising early-stage science, despite the challenging macroeconomic environment.

The data underscores how oncology and obesity continue to attract disproportionate investment attention, reflecting their enormous medical and commercial potential. At the same time, Europe’s strong performance suggests that capital is not only concentrated in the U.S. but flowing into diverse geographies that support high-quality biotech pipelines.

Looking Ahead

As 2025 progresses, the companies that raised significant rounds this January will likely push toward critical clinical milestones or seek strategic partnerships. Whether in advancing novel cancer therapies or broadening obesity treatment options, the momentum generated in the first month of the year could set the stage for notable progress across the biotech landscape.