March 2: Oncology startups worldwide is witnessing a drop in funding recoding a slide by 24% in 2023 compared to the previous year, signaling a tough road ahead for those fighting cancer. In India, where innovation in this field is on the rise, startups are also feeling the pinch.
This decline reflects a challenging landscape for startups in the oncology sector according to a new report by Tracxn.
In India, the scenario is no different, with oncology companies raising a total of $9.7 million in 2023. Bengaluru emerged as a leading city in terms of both total funding and the number of funded companies.
Tamil Nadu-based startup Perfint Healthcare stood out as a top fundraiser, securing an impressive $40.1 million in total funding. Other notable Indian companies include Immuneel and Zumutor, based in Bengaluru, which raised $27.6 million and $26.2 million, respectively.
Oncology Startups Remains Upbeat in India
Despite the funding downturn, the oncology startup ecosystem remains dynamic, with more than 5,500 startups globally, including 94 in India. Out of these, 55 have successfully secured funding. However, the journey for oncology startup investments has been volatile, reaching its peak in 2019.
The global oncology startup landscape reached its funding zenith in 2021, with nearly $23.5 billion invested worldwide. However, this trend reversed in the following years, with 2023 witnessing the lowest funding in five years. As of 2024, the total funding stands at $424 million.
Early-stage funding experienced a sharp decline of 30% in 2023, dropping to $5.6 billion from $8 billion the previous year. Conversely, late-stage funding remained relatively stable, with around $3.7 billion raised in both 2023 and 2022. Late-stage funding peaked in 2020 at $10.6 billion.
Despite these challenges, the oncology sector remains resilient, leveraging innovations such as artificial intelligence, robotics, and genomic sequencing to drive advancements. Tracxn emphasizes that despite funding fluctuations, the sector continues to evolve, promising new solutions in the fight against cancer.
