Biotech Funding Shifts: Crowdfunding Rises as Traditional Investments Fall in Gene Therapy Sector
September 17, 2025
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.
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Labiotech UG • Sep 17, 2025
Cell and gene therapy funding: Trends and challenges in 2025