TechBio Market Map: AI in Drug Discovery and Development (b2venture)

Summary

• The market map zooms in on software solutions, AI- and ML-driven companies and foundational tech layers reshaping drug discovery and development.§1
• TechBio is defined as technology platforms that are inherently tied to advancing scientific work and geared towards an impactful end product.§1
• Two major waves shape the TechBio stack: evolving data infrastructure and the ML/AI innovation cycle driven by LLMs and generative AI.§5
• Biotech's binary asset risk and long timelines do not match the typical software VC fund profile.§3
• Startups must choose between licensing their platform and keeping it to develop their own assets.§3
• In 2021, European TechBio startups raised $8.5 billion.§6

Key insights

1. Genomic data from projects such as UK Biobank, Genomics England and All Of Us is housed on separate proprietary platforms.§2
2. Stakeholders want to understand how AI works, not only that it works.§2
3. AI is moving biotech and technology business models closer together by accelerating R&D and promising faster asset development and exits.§3
4. Early outlicensing can provide revenue and validate a platform, while in-house asset development captures greater upside later.§3
5. Europe's scientific talent and public-private collaboration support strength in early-stage R&D.§6
6. Owkin collaborates with major pharma companies to harness AI for precision medicine.§6