Which firms fund cell therapy companies?

This blog post has been written by the person who has mapped the cell therapy funding market in a clean and beautiful presentation

Cell therapy funding has reached unprecedented levels, with over $15 billion invested globally in 2024 alone.

The landscape is dominated by specialized venture capital firms that understand the complex regulatory pathways and long development timelines inherent to cellular medicines. These investors are backing everything from CAR-T cell therapies for cancer to iPSC-derived treatments for neurological disorders.

And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

Which venture capital firms are leading cell therapy investments and what companies have they backed?

Arch Venture Partners dominates the space with $1.5 billion deployed since 2023, focusing on programmable CAR-T therapies that can target solid tumors.

Their flagship investment is ArsenalBio's $325 million Series C in September 2024, which SoftBank Vision Fund 2 co-led. ArsenalBio develops programmable CAR-T cells with logic gates that can distinguish between healthy and cancerous tissue. Arch also backed Mirador Therapeutics' $400 million Series A for innate immune modulators targeting fibrosis, and Metsera's $505 million Series B for metabolic cell therapies.

OrbiMed follows with $1 billion invested, taking a broader approach that includes manufacturing infrastructure. They provided strategic debt to Cellipont Bioservices to build a commercial cell therapy manufacturing facility in Texas. Their portfolio includes Ottimo Pharma's $140 million Series A for PD-1/VEGFR2 bifunctional cell therapy and Nohla Therapeutics for allogeneic iPSC-derived treatments.

Flagship Pioneering has deployed $800 million through their venture foundry model, creating companies from scratch. Their approach centers on digitizing cell behavior through Cellarity and developing in vivo CAR-T approaches through multiple stealth companies. RhyGaze raised $86 million for optogenetic retinal cell therapy, while Quotient Therapeutics received $50 million for somatic genomics platforms.

Need a clear, elegant overview of a market? Browse our structured slide decks for a quick, visual deep dive.

How much capital has each major firm invested in cell therapy over the past two years?

The investment hierarchy shows clear leaders with Arch Venture Partners at $1.5 billion, followed by OrbiMed at $1.0 billion, and Flagship Pioneering at $800 million.

RA Capital Management has invested approximately $500 million since 2023, focusing on allogeneic platforms like Be Biopharma's B-cell medicines ($92 million Series C) and Umoja Biopharma's in vivo CAR-T platform ($100 million Series C in Q1 2025). Third Rock Ventures deployed around $400 million building clinical-stage companies in oncology and rare diseases.

Sofinnova Partners represents the European perspective with €200 million invested, backing Purespring Therapeutics' €80 million Series B for AAV-based gene and cell therapy for kidney disease. Their geographic focus allows them to tap into European Union funding programs and regulatory advantages for advanced therapies.

These figures represent direct investments and don't include follow-on funding or co-investments with other firms. The concentration among these six firms demonstrates how specialized knowledge and regulatory expertise create barriers to entry for new investors in this space.

If you want fresh and clear data on this market, you can download our latest market pitch deck here

What specific technologies and scientific breakthroughs are these firms financing?

The investment focus has shifted dramatically toward next-generation platforms that solve current limitations of autologous cell therapies.

Programmable cell therapies represent the largest category, with firms backing logic gates and multi-antigen targeting systems. ArsenalBio's programmable CAR-T platform can differentiate between tumor and healthy tissue, addressing the major safety concern with solid tumor treatments. Flagship's portfolio companies are developing cells that can be programmed in vivo, eliminating the need for ex vivo manufacturing.

iPSC-derived "off-the-shelf" therapies attract significant funding for their scalability advantages. These allogeneic approaches eliminate patient-specific manufacturing, reducing costs from $500,000 per treatment to potentially under $50,000. Firms are backing retinal, neural, and cardiomyocyte replacement therapies that can treat millions of patients from a single manufacturing run.

NK-cell and macrophage-based platforms receive investment for their innate immune advantages. Unlike T-cells, these cells don't cause graft-versus-host disease and can be used across multiple patients without genetic matching. Investors see these as the path to truly universal donor cells.

Somatic genomics and single-cell behavior mapping represent emerging areas where firms like Flagship invest in platform technologies that discover new cell-directed drugs through computational approaches rather than traditional screening.

Which cell therapy startups received the largest funding rounds in 2024-2025 and what do they develop?

ArsenalBio leads with a $325 million Series C in September 2024, developing programmable CAR-T cells with sophisticated logic gates for solid tumor targeting.

What development stages are the most heavily funded companies currently in?

Most top-funded cell therapy companies operate in Phase I/II clinical trials, representing the critical inflection point where efficacy data determines commercial viability.

Companies like ArsenalBio and Umoja Biopharma are conducting multiple Phase I studies to establish safety profiles before advancing to efficacy trials. This stage requires $100-300 million in funding to support manufacturing scale-up, regulatory submissions across multiple jurisdictions, and patient enrollment.

A smaller subset advances to Phase III trials, primarily autologous CAR-T therapies for blood cancers where the regulatory pathway is well-established. These companies need $500 million to $1 billion for pivotal studies and commercial preparation.

iPSC-derived retinal and neural programs remain predominantly in preclinical or early clinical stages due to complex regulatory requirements for cell replacement therapies. These programs require 8-12 years from discovery to market, explaining why investors focus on platform technologies rather than single products.

Looking for the latest market trends? We break them down in sharp, digestible presentations you can skim or share.

What funding terms and conditions do major firms typically use for cell therapy investments?

Equity financing through Series A-C rounds dominates the landscape, with convertible notes reserved for very early-stage companies.

Milestone-based tranches have become standard for larger rounds, tying funding disbursements to specific clinical and regulatory achievements. ArsenalBio's $325 million round includes tranches released upon IND filing, Phase I data readouts, and partnership milestones. This structure protects investors while ensuring companies have adequate runway for key value inflection points.

Strategic debt facilities support capital-intensive infrastructure investments, particularly for contract development and manufacturing organizations (CDMOs). OrbiMed's investment in Cellipont demonstrates how debt financing can support the manufacturing ecosystem without diluting equity in operating companies.

Liquidation preferences typically range from 1x to 2x for Series A rounds, increasing to 2x-3x for later stages given the binary nature of clinical outcomes. Anti-dilution provisions are standard, with weighted average broad-based protection common in competitive rounds.

Board composition generally gives investors one seat per $50-100 million invested, with experienced cell therapy executives often recruited as independent directors to provide strategic guidance during clinical development.

If you want to build or invest on this market, you can download our latest market pitch deck here

Which geographic regions receive the most venture capital and corporate funding?

North America captures 62% of global cell therapy funding, driven by robust venture capital ecosystems in Boston, San Francisco, and San Diego.

The United States benefits from FDA's relatively predictable regulatory pathways for cell therapies, established manufacturing infrastructure, and deep pools of specialized talent from academic medical centers. California alone accounts for approximately 30% of global funding through companies in the San Francisco Bay Area and San Diego biotech cluster.

Europe represents 20% of funding, with the United Kingdom leading through tax incentives for biotech investment and streamlined MHRA approval processes. Germany and Switzerland follow with strong pharmaceutical industry presence and government support for advanced therapy manufacturing.

Asia-Pacific captures 15% of funding, with China driving growth through government initiatives supporting cell therapy development. Japan's regenerative medicine regulatory sandbox provides fast-track approval pathways, attracting investment in iPSC-derived therapies. Singapore serves as a regional hub with favorable regulatory environment and manufacturing incentives.

The remaining 3% flows to emerging markets in the Middle East and Latin America, primarily through sovereign wealth fund investments in platform technologies rather than direct company funding.

How are pharmaceutical giants and non-traditional investors participating in cell therapy funding?

Large pharmaceutical companies participate through dedicated venture arms and strategic partnerships rather than direct Series A-C investments.

Novartis leads through venture investments and partnerships, leveraging their CAR-T manufacturing expertise gained from Kymriah. Gilead's Kite Pharma division actively scouts allogeneic platforms that could enhance their autologous CAR-T portfolio. Bristol Myers Squibb and Roche participate through corporate venture capital arms, focusing on technologies that complement their existing cell therapy franchises.

Non-traditional investors bring strategic value beyond capital. NVIDIA Ventures invests in companies using AI for cell engineering and manufacturing optimization. SoftBank Vision Fund 2 co-led ArsenalBio's round, betting on the convergence of biotechnology and artificial intelligence for drug discovery.

Family offices like T. Rowe Price and Milky Way Investments participate in later-stage rounds, seeking exposure to the growing cell therapy market without the specialized knowledge required for early-stage investments. Sovereign wealth funds including Qatar Investment Authority and Temasek invest in gene-editing platforms that enable next-generation cell therapies.

These investors often provide access to global markets, manufacturing partnerships, and technological capabilities that pure venture capital cannot offer, making them attractive co-investors for specialized biotech firms.

What strategic interests drive funding from tech companies and other non-traditional investors?

Technology companies invest in cell therapy to capture the intersection of biotechnology, artificial intelligence, and manufacturing automation.

NVIDIA Ventures backs companies developing AI-driven cell engineering platforms, seeing cell therapy as a natural application for their GPU computing capabilities in drug discovery and manufacturing optimization. Google Ventures invests in companies using machine learning to predict cell behavior and optimize manufacturing processes.

Family offices and sovereign wealth funds seek diversification into healthcare while betting on demographic trends driving demand for regenerative medicine. These investors typically focus on platform technologies with multiple therapeutic applications rather than single-indication companies.

Pharmaceutical giants invest strategically to access novel technologies that could enhance their existing portfolios or provide new revenue streams. Vertex's investment in gene-editing companies reflects their strategy to expand beyond cystic fibrosis into broader genetic diseases through cell-based approaches.

Manufacturing and logistics companies like Thermo Fisher and Danaher invest in cell therapy infrastructure, recognizing the massive equipment and service opportunity as the industry scales from hundreds to thousands of approved products over the next decade.

Planning your next move in this new space? Start with a clean visual breakdown of market size, models, and momentum.

If you need to-the-point data on this market, you can download our latest market pitch deck here

How much total funding has gone into the global cell therapy sector in 2024 and early 2025?

The global cell and gene therapy sector raised $15.2 billion in 2024, representing 30% growth compared to 2023 despite broader biotech funding challenges.

Q1 2025 saw $6.7 billion raised across biopharma startups, with cell therapy companies capturing approximately 10-15% or $600 million to $1 billion of this total. The first half of 2025 is estimated to reach $7-8 billion in total cell and gene therapy funding.

This funding level reflects investor confidence in clinical-stage companies advancing toward commercialization, with several high-profile IPOs and acquisition exits providing liquidity for early investors. The growth occurs despite stricter due diligence standards and longer fundraising cycles compared to the peak funding environment of 2021-2022.

Private equity and debt financing contribute increasingly to total funding volumes, particularly for manufacturing infrastructure and commercial-stage companies that need growth capital rather than development funding.

What do experts forecast for 2026 funding trends in cell therapy?

Expert forecasts project cell and gene therapy funding will rebound to $18-20 billion in 2026, driven by maturing allogeneic platforms and successful clinical data readouts from current portfolio companies.

Venture capital activity is expected to stabilize around 2024 levels, with increased selectivity favoring companies with differentiated platforms and clear paths to market. Corporate venture capital from pharmaceutical companies will increase as they seek strategic access to next-generation cell therapy technologies.

Technology focus will shift toward AI-guided cell engineering, universal donor cells that don't require patient matching, and in vivo gene-modified cell therapies that eliminate ex vivo manufacturing. These approaches address current limitations around cost, scalability, and manufacturing complexity.

Geographic diversification will continue with increased investment in European and Asian companies, particularly those with regulatory advantages or cost-effective manufacturing capabilities. Government funding through initiatives like the European Innovation Council and Japan's AMED will supplement private investment in early-stage research.

The funding environment will reward companies that demonstrate clear competitive advantages, robust intellectual property positions, and scalable manufacturing strategies rather than pure technology innovation.

Which accelerators and government initiatives actively support early-stage cell therapy ventures?

The Alliance for Regenerative Medicine (ARM) leads sector advocacy and provides data, policy guidance, and investor networking events for early-stage companies.

Government initiatives include NIH and CIRM grant programs supporting iPSC and stem cell research with $200-500 million annually in direct funding. The European Innovation Council provides grants and equity investments for advanced therapy companies through its accelerator program.

Japan's AMED operates a regenerative medicine regulatory sandbox that allows expedited approval pathways for innovative cell therapies, attracting international companies to establish Japanese subsidiaries for faster market access.

Academic medical centers like Harvard's Wyss Institute, Stanford's Bio-X program, and UCSF's stem cell center provide incubation space, regulatory guidance, and access to clinical trial networks for early-stage companies.

Industry-specific accelerators include Johnson & Johnson's JLABS network, which provides laboratory space and mentorship for cell therapy startups, and the California Institute for Regenerative Medicine's ALPHA Clinics program supporting translation from research to clinical trials.

Not sure where the investment opportunities are? See what's emerging and where the smart money is going.

Conclusion

Sources

1. ArsenalBio Series C Announcement
2. Arbor Biotechnologies Funding
3. Flagship Pioneering Cellarity Launch
4. Quotient Therapeutics Announcement
5. Cellipont OrbiMed Investment
6. Gene Therapy M&A and Ventures 2024
7. Cell and Gene Therapy Investment Surge
8. JPMorgan Biopharma Q1 2025 Report
9. ASGCT Q1 2025 Sector Report
10. Ottimo Pharma Series A
11. Alliance for Regenerative Medicine Q1 2025