Medical Alley FY2023 Venture Report

 // Reports

April 1  

The Medical Alley Venture Report is a quarterly analysis of investment, M&A and other factors driving growth in Medical Alley®, the epicenter of health innovation and care®.

The FY2023 report includes information on:

  • Medical Alley Starts highlights
  • Private and public markets activity
  • SBIR/STTR funding
  • Job growth in Medical Alley

Key takeaways:

  • Medical Alley continues to be a leading hub of healthcare innovation and investment. After Massachusetts and California, Medical Alley startups raised the third most private capital per capita out of all states in 2023, surpassing other venture capital hubs such as New York and Colorado.
  • While Massachusetts’ volume is driven by late-stage biotech and pharma rounds and California’s by large digital health raises, Medical Alley’s startups are much more diversified. However, late-stage deals were much more prevalent in 2023 than in previous years.​
  • $1.57 billion in total startup funding represented only a 7% decrease over 2022, showing Medical Alley’s resilience in unfavorable market conditions.​
  • Both public markets and M&A activity picked up toward the end of the year. ​This could suggest markets are stabilizing after a tumultuous 2023.​
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