Oncology startups thriving despite funding challenges: Tracxn

Oncology startups across the world are thriving despite funding challenges, says Tracxn.

Even oncology startups have been affected by the funding winter. (Freepik)

A report by startup data platform Tracxn found that funding for oncology companies fell 24 per cent in 2023 from $12.1 billion in 2022. Indian oncology companies raised $9.7 million in 2023, compared to $9.2 billion globally with Bengaluru leading among Indian cities in terms of total funding and number of funded companies.

In India, Tamil Nadu-based startup Perfint Healthcare emerged as a frontrunner in raising funds, securing $40.1 million in total funding, followed by Bengaluru-based Immuneel and Zumutor with $27.6 million and $26.2 million, respectively.

There are more than 5,500 oncology startups around the world and 94 of them were established in India. 55 of the 94 have succeeded in securing funding. The oncology startup investment landscape had an up-and-down journey, peaking in 2019.

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The global oncology startup ecosystem reached a high of funding in 2021, reaching nearly $23.5 billion globally. But there was a downwards trend in the following years with 2023 marking the year of lowest funding in five years. To date, a total of $424 million in funding has happened in 2024.

Early stage funding saw a decline of 30 per cent in 2023 and fell to $5.6 billion compared to $8 billion in the previous year. The highest amount of early-stage funding also happened in 2021 with $13.6 billion. Early-stage funding reached a total of $291 million to date. But while early-stage funding dropped, late-stage funding remained consistent — around $3.7 billion was raised in both 2023 and 2022. Late-stage funding peaked in 2020 with $10.6 billion.

In spite of funding challenges, the oncology sector continues to evolve and innovate with solutions taking advantage of artificial intelligence, robotics and genomic sequencing, according to Tracxn.

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Cancer