Indiana life sciences companies raise record $620 million in venture capital in 2022 – Indianapolis Business Journal

Richard DiMarchi, co-founder of MBX Biosciences (IBJ photo)

Indiana’s healthcare and life sciences sector, often touted as a key contributor to the state’s economy, landed a record $619.8 million in venture capital last year, a sharp increase from the previous record that was held had been set up a year earlier.

Venture capital is an important source of funding for early and mid-stage companies that are too young or untested to go public or merge with a larger company. It is considered a key indicator of the health and potential growth of a sector.

According to BioCrossroads, an Indianapolis-based group that nurtures and invests in the state’s life sciences sector and tracks funding, the amount raised last year is about 43% higher than the previous record $433 million set by the was set up in 2021.

37 companies signed 40 venture financing deals last year with an average deal size of $15.5 million. That’s an improvement from last year, when 39 companies signed deals averaging $11.1 million.

“This just goes to show that companies can gain traction and appeal to investors,” said Patricia Martin, President and CEO of BioCrossroads.

In addition to the biotech and pharmaceutical companies, the sector includes agricultural technology, digital health, medical devices and orthopedics, all of which have received significant funding.

Companies often use the venture funds to fund expensive clinical trials and to develop and test prototypes. Investors give money to companies in exchange for fractional ownership of growing companies.

Last year’s transaction sizes ranged from $100,000 to $124 million.

Eight companies received the lion’s share of the funding at $511 million. The other 30 companies split the remaining $108 million.

The wide range of funding amounts often reflects that some companies are more advanced in their research and development and need huge amounts to advance their experimental products or services.

Several companies have made the list for two consecutive years, showing investors have continued confidence in their progress.

“They want to see repeat players,” Martin said. “And we see what makes me confident that we have some strength in this sector.”

Here is a list of the top 10 venture capital funding recipients in Indiana in 2022:

  • Inari, West Lafayette, $124 million to develop a plant breeding platform.
  • MBX Biosciences, Carmel, $115 million to develop biotech drugs for endocrine disorders.
  • Solinftec, West Lafayette, $60 million to develop digital farming platform
  • List Therapeutics, Fishers, $48 million to develop contract manufacturing services.
  • AZIisotope, Bunker Hill, $47 million to produce medicinal isotopes to treat cancer.
  • BiomEdit, Fishers, $40 million to develop microbiome innovation platform for animal health.
  • Taranis, Westfield, $40 million to develop artificial intelligence plant analytics platform.
  • Sudo Biosciences, Menlo Park, $37 million to develop therapies for immune disorders.
  • Torigen Pharmaceuticals, Farmington, $17.5 million for the development of immunotherapeutic cancer treatments.
  • Morphimmune, West Lafayette, $17.1 million to develop a biotechnology and chemistry platform for reprogramming the immune system.