Capital investment in early-stage biotechnology companies declined in 2025, with investors focusing on later-stage ventures supported by more data. Despite this trend, BioSpace has announced its NextGen Class of 2026, highlighting 15 startups that have managed to secure funding during a challenging period for the sector.
According to a year-end report from PitchBook, venture capital firms shifted their strategies after heavy investments during the pandemic led to underperforming assets. Companies that were able to attract funding faced significant scrutiny and had to demonstrate strong potential. PitchBook described recent biotech innovations as “nothing short of revolutionary.”
BioSpace’s selection process for the NextGen Class of 2026 focused on companies that announced initial, seed, or Series A financing rounds between October 1, 2024, and September 30, 2025. The evaluation considered factors such as financing, partnerships, pipeline development, growth potential, and innovation.
This year’s list includes startups working on rare diseases and conditions often overlooked by larger pharmaceutical companies. The selected companies are addressing areas such as spinal cord injury, cancer, metabolic disease, inflammation, and immunology.
John Maraganore is noted for his involvement in two featured biotechs: City Therapeutics and Corsera Health. “While we don’t like to double reward any one person or firm, we couldn’t help but be intrigued by City Therapeutics and Corsera Health.” Maraganore collaborated with ARCH Venture Partners for City Therapeutics to target new RNAi therapeutic opportunities. Corsera Health uses artificial intelligence tools combined with siRNA technology for annual cardiovascular treatments.
Corsera recently raised $80 million as it advanced its first preventative heart disease program into clinical trials. The company was also named one of BioSpace’s top startups to watch.
Former MyoKardia leaders now lead Kardigan Therapeutics—a NextGen honoree—after Bristol Myers Squibb acquired MyoKardia in 2020. Kardigan aims to reduce cardiovascular disease mortality rates; its Phase III asset ataciguat has shown promising results in slowing heart damage progression.
Stylus Medicine launched amid challenges for cell therapy development after major pharmaceutical companies exited the field in 2025. Stylus plans to develop next-generation genetic medicines designed to be less complex than previous approaches.
Light Horse made headlines by launching with a $62 million Series A round in January 2025 and securing a deal with Novartis valued at up to $1 billion. The company uses genetic screening and chemical libraries for small molecule drug discovery focused initially on oncology.
BioSpace editors will continue monitoring these emerging companies as they progress toward clinical trials and further drug development milestones.
“This is the 12th edition of NextGen, which gives BioSpace’s editors a chance to take a deep dive into the biotech newsmakers of the future. We can’t wait to see what lucky year 13 has to hold.”
