The COVID-19 pandemic has caused a great boom in VC funding in the biotechnology sector. According to a study, VC companies increased their investments in biotech startups from 2,200 globally in 2016 to 3,100 by 2021.
This highlights the growing importance of investing in science, especially in the biotech industry.
Although VC biotech funding slightly declined since 2022, the number of industry-driven startups only keeps growing. A study shows that the number of biotech businesses increased by 4,8% in 2023.
Having a biology degree and working in a biotech startup, I am sure that those numbers will become more and more each year — such companies contribute to society by finding solutions to granular issues in the spheres of health or even ecology.
So, here's a list of biotech startups I find useful and innovative as hell:
Eagle Genomics is a biotech startup that drives and aligns emerging big data, AI, and microbiome data standard frameworks to deliver scientific insights and innovations.
Key markets: Food and Nutrition, Beauty and Personal Care, AgBio, and Biopharma
Investments: Since its founding in 2016, the company has raised $39.9M
Awards: In 2021, the company won as AI Champion in Business Weekly Awards and was ranked within the top 60 of 500 global food tech companies
Success story: Eagle Genomics helped a global Unilevel company that sells over 400 brands (food, personal and household care, etc.) to find a scalable solution in enabling data-driven product development and providing parallel computing capabilities to keep up with R&D demands.
The company decided to transform Ulilevel`s biological research activities to bring innovative products to customers faster.
In order to do so, a biotech startup created a cloud-based system architecture that provided an opportunity for limitless expansion and enabled parallel analysis. Given that, Unilevel reached the following results:
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Enabled the digital transformation of life sciences R&D
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Increased productivity, reduced product time to market
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Boosted innovation and turned data into product and IP
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Enabled effective collaboration around data assets
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Enabled the first-of-a-kind microbiome scientific product claim, for a Unilevel toothpaste product
Ginkgo Bioworks is working to program cells and make everything from therapeutics to materials or edible food. It uses custom microbes and proprietary processes to develop an array of cutting-edge biological engineering products and even custom microbes.
One of the problems the company is eager to solve is the possible lack of food in the future, caused by a rapidly growing population on a warming planet.
At Ginkgo, specialists are working towards a future, where genetic engineering can help make sustainable, healthy, delicious, and accessible foods to everyone.
Key markets: Agriculture, Biopharm, Governments, Industrials, and Nutrition & Wellness.
Investments: The company has raised $800.4M since its founding in 2008 and had 1 exit.
Awards: The company is highly recognized in the world. Ginkgo Bioworks got the Rosalind Franklin Award in 2019, the Online Audience Reward at the Fiction Science, Art and Film Festival in Vienna in 2011, and DARPA Award with $9.5M in 2018
Success story: The global biotech community has come together during the pandemic to develop and deliver multiple effective and safe vaccines for COVID-19.
However, more than two-thirds of the global population had not been vaccinated — one way to reach the rest was by enabling more scalable production of the raw materials needed to make vaccines.
Ginkgo Bioworks collaborated with Aldevron, a world leader in manufacturing mRNA vaccines and raw materials, to optimize the production of an important component often required to manufacture mRNA vaccines and therapies: the vaccinia capping enzyme (VCE).
Through this collaboration, Aldevron is now able to produce over 10 times more VCE per batch than the previous process.
Bionaut Labs uses a precision-targeted method to transform the way brain disorders are treated. The company develops microscale robots to deliver biologics or small molecule therapies locally to targeted disease areas.
It allows the treatment of such diseases as neuro-oncology, brainstem glioma, neurodegeneration, and some others.
Key market: Health
Investments: The company has raised $63.2M in total since it was founded in 2016. It was funded by prominent companies like Khosla Ventures, Gaingels, Upfront Ventures, Bold Capital Partners, etc.
Awards: The U.S. Food and Drug Administration granted the company orphan drug designation for BNL-101 for the local treatment of all malignant gliomas.
Success stories: Currently, the Bionaut Labs team keeps raising financing to fund the first clinical trials of the tiny, drug-carrying robots.
Gelesis is a biotechnology company developing first-in-class therapeutics to safely treat obese, overweight, and diabetic patients.
Key markets: Health, Biopharm
Investments: Gelesis has raised $312.8M in total since 2006.
Awards: Gelesis got a €2.9 Million Award from the Italian Ministry of Economic Development
Success story: With the use of biomimicry, the company developed 2 products to help people change their diet, lifestyle, and health:
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Plenity
It is indicated to aid in weight management with a safety and efficacy profile. According to a pivotal study, 59% of adults had a clinically meaningful response to Plenity, losing on average 10% of their weight. Overall, it helped over 200,000 people on the weight loss journey since its launch.
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The Gelesis Platform
The proprietary Gelesis platform is the first and only superabsorbent hydrogel made only from naturally-delivered building blocks. It stimulates the fullness of users` stomachs to help them eat less.
Motif Foodworks is a biotechnology company that helps to make plant-based foods with improved taste, texture, and nutritional values.
Key markets: Food & Nutrition
Investments: The company has raised $343.5M since its founding in 2019.
Success story: Motif Foodworks has created plant-based burger patties made with the company's breakthrough ingredients HEMAMI and APPETEX — which provide rich, meaty flavor and delicious, juicy texture.
The technology was tested among customers, and the results showed that 55% of consumers would eat the demo burger regularly, while 63% preferred the demo burger over a leading plant-based product at retail.