Venture capital funding shifts to favor smaller U.S. life sciences companies
Over the last two years, venture capitalists have significantly increased funding for companies with a smaller employee base.
So far in 2024, venture capital funding into U.S. life sciences companies with at most 60 employees is almost double the amount compared to companies with 60+ employees. Historically, companies with over 60 employees have received most of the funding until 2022 when the smaller employers started reeling in more investment.
From a real estate perspective, this could drive an increase in the demand for lab space across the U.S. as these smaller employers, particularly those with less than 10 employees, come out of incubation and into the market with a need to increase headcounts.