he Covid-19 pandemic ravaged many parts of the economy — but in one sector, the pandemic led to an influx of cash. Venture capital funding for infectious disease companies reached an all-time high in 2020 at $2.9 billion according to an analysis conducted by Pitchbook for. There were also a record number of new deals: 155, an 80% increase compared to a decade ago.
Lisa McDonald, PandemicTech’s other cofounder, says that there is not only new interest in infectious disease from investors, but also from company founders. “We saw an uptick in new entrants to the space,” she says, noting that many existing companies in the broader tech sector pivoted to focus on infectious disease during the pandemic.
Not all infectious disease companies have been underfunded. Moderna, which created one of the world’s first Covid-19 vaccines, had some of the biggest funding deals in the healthcare sector in 2015, 2016 and 2018. Before going public in 2018 the company was valued at $7 billion. Its success during the pandemic also minted threeWhile the pandemic-era venture funding has been a boon to companies, it’s unclear how long it will last.