AFTER raising record amounts of capital in 2021, South-east Asian biotech companies continue to draw in investors this year. However, deal terms are getting tighter, as venture capitalists seek more protection against macroeconomic headwinds.

According to data from private markets specialist Preqin, 2021 was a breakout year for regional biotech, with US$675.9 million worth of venture deals, more than 5 times that of 2020 (see chart).

Fundraising this year remains strong, with 27 biotech venture investments worth US$530.1 million in South-east Asia – mainly Singapore – as of Aug 25. Notable deals include cancer treatment firm Tessa Therapeutics’ US$126 million Series A raise in June, as well as mRNA player RVAC Medicines’ US$140 million Series B round.