Biotech Funding Shifts: Crowdfunding Rises as Traditional Investments Fall in Gene Therapy Sector

September 17, 2025
Biotech Funding Shifts: Crowdfunding Rises as Traditional Investments Fall in Gene Therapy Sector
  • Recent investments in AAV technology companies, including Splice Bio's €118 million funding round and Fuse Vectors' $5.2 million pre-seed, highlight a growing interest in overcoming manufacturing bottlenecks and expanding gene therapy capabilities.

  • Innovative approaches like NanoPalm's development of patterned lipid nanoparticles aim to improve drug delivery by enabling organ-specific targeting and enhanced stability, potentially reducing costs and easing hospital burdens.

  • As traditional funding declines, crowdfunding is emerging as a promising supplement, allowing startups to validate market demand, gather clinical data, and attract larger investors.

  • The overall decline in funding impacts therapies such as CAR-T, which face high manufacturing costs and severe side effects, but technological advancements could help revitalize investment and application.

  • UK-based startup ImmunoKey has received a $225,000 grant to develop multi-antigen CAR-T platforms, aiming to overcome issues like antigen escape and off-tumor toxicity.

  • Tetraneuron is nearing clinical trial readiness with over €3.5 million in non-dilutive funding, focusing on neurodegenerative diseases like Alzheimer’s through scalable gene therapy vectors targeting neuronal plasticity.

  • Despite manufacturing and affordability challenges, technological innovation and alternative funding avenues offer hope for advancing cell and gene therapies amid ongoing economic uncertainties.

  • Venture capital investments in cell and gene therapy have plummeted from $8.2 billion in 2021 to just $1.4 billion in 2024, with overall biotech funding falling from $2.6 billion early in 2025 to $900 million by mid-year.

  • High costs, lengthy clinical development, and associated risks continue to deter many investors, despite the promising potential of these therapies.

  • Emerging approaches such as advanced AAV technologies, new manufacturing platforms, and targeted therapies like Tetraneuron's Alzheimer’s treatment are being developed to address these hurdles.

  • Alternative funding methods, including crowdfunding platforms like the US-based BioTech Funding Portal, are gaining traction, allowing startups to raise up to $5 million annually from the public with a focus on transparency and community engagement.

Summary based on 1 source


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