In 2021, the biotech sector experienced a surge in initial public offerings (IPOs), with 99 companies entering the public markets and raising $15.6 billion, according to BioSpace. This influx of capital was driven by the urgency to develop COVID-19 treatments and vaccines, as well as broader interest in life sciences during the pandemic.
Audrey Greenberg, Mayo Venture Partner, described this period as “a masterclass in what happens when scientific momentum meets monetary excess,” likening it to “biotech’s version of speed dating: everyone wanted to fall in love with the next Moderna, and no one wanted to miss the match.” However, she noted that “gravity always returns,” reflecting on how many companies have since struggled or gone bankrupt.
Stella Vnook, CEO of Likarda, observed that the downturn “revealed how financial momentum can outpace biological maturity.” She explained that many companies went public based on promising science without sufficient data or infrastructure. Vnook added that recent market contractions have forced a return to fundamentals such as clinical validation and operational discipline. She emphasized that this is not a collapse but rather “a recalibration.”
Mike Perrone of Baird said the IPO rush created a “logical gap” by pushing many early-stage companies into public markets prematurely. He believes biopharma has nearly closed this gap and now features more mature firms ready for IPOs. Recent large funding rounds for later-stage companies indicate renewed investor interest in established science.
BioSpace highlighted five companies from the 2021 IPO wave:
Verve Therapeutics raised $306.7 million in June 2021. The company focused on gene editing for cardiovascular diseases and maintained its original mission despite industry shifts toward COVID-19 research. In June 2023, Eli Lilly partnered with Verve on its lead asset VERVE-102, eventually acquiring Verve for up to $1.3 billion in June 2025—a move Rajesh Sharma of DelveInsight said “signals confidence in Verve’s approach and provides global clinical and commercial capabilities.” Sharma stated, “Verve has largely delivered on its IPO promise in terms of science and platform execution.”
Caribou Biosciences debuted publicly after raising $304 million in July 2021. Despite early excitement—bolstered by co-founder Jennifer Doudna’s Nobel Prize win—the company faced setbacks including AbbVie withdrawing support and workforce reductions amid strategic pivots between oncology and autoimmune diseases. As of mid-2025, Caribou had enough funds to operate into late 2027.
Amylyx went public in January 2022 with proceeds of $190 million focused on ALS therapy AMX0035 (Relyvrio). After initial FDA approval under an accelerated pathway, a failed Phase III study led Amylyx to withdraw Relyvrio from the market in April 2024. Analyst Joe Thorne noted Amylyx has since shifted focus to metabolic disease therapies such as avexitide for post-bariatric hypoglycemia.
Invivyd raised $355.8 million through its August 2021 IPO primarily for COVID-19 antibody development. Early setbacks included reduced efficacy against new variants and significant stock value loss following negative data releases; however, Invivyd secured emergency use authorization for Pemgarda in March 2024 while pivoting toward broader antiviral research.
Metagenomi entered Nasdaq markets with $93.8 million raised in February 2024—after most peers had already gone public—and remains preclinical but is advancing gene editing technologies with backing from Bayer and Moderna. Despite an approximately 85% drop in share price since its debut, analyst Thorne believes Metagenomi is progressing toward clinical trials next year after restructuring efforts aimed at prioritizing key programs.
The experiences of these five companies illustrate both the opportunities presented by rapid investment during extraordinary times and the challenges faced when financial enthusiasm exceeds scientific readiness.
