The 2022 Massachusetts Biopharma Funding Report shows another strong year for Massachusetts’ world-leading early-stage R&D cluster. The calendar year ending on December 31, 2022 saw the second highest total of venture capital (VC) funding to Massachusetts-based biopharma companies totaling $8.72 billion.

2022 Biopharma Funding Report Key Data Points

• Venture capital (VC) funding to Massachusetts-based biopharma companies totaled $8.72 billion, surpassing 2020’s $8 billion and only falling short of 2021’s $13.66 billion
• About 25 percent of national VC biopharma investments were to Massachusetts-based companies
• The average round size shrank ($35.3 million 2022 compared to $53 million in 2021), and investments flowed to more companies (246 companies over 273 rounds compared to 236 across 253 rounds)
• 51 percent of companies that received VC funding in 2022 were located outside of Cambridge, up from 42 percent in 2021. Twelve municipalities outside of Cambridge received at least 1% of the total VC funding statewide in 2022, up from six the previous year
• 8 companies went public with an average deal size of $162 million, representing 33% of all biopharma IPOs in the U.S. in 2022
• 26 Massachusetts biopharma companies were, down from 34 in 2021 and 28 in 2020