The publication of this study marks the second consecutive year in which we have examined the prevailing trends in the life sciences lending market. Over the course of the five-year period now encompassed by this report, the market has continued to evolve. We analyze publicly filed debt financing agreements of $25 million or more entered into from 2021 to 2025 by U.S. and foreign biotechnology, medical device, diagnostics and related companies with stock listed in the United States. The focus is primarily on companies that are not yet cash-flow positive, and the lenders who cater to those borrowers.
Venture and growth credit has become an indispensable financing tool for companies seeking to extend their cash runway without the dilution of a traditional follow-on equity offering. The pages that follow dissect some of the principal terms seen in this market and recent trends across a diverse set of lenders, including venture debt funds, credit arms of large asset managers and life science focused multi-strategy investment firms.
The 2025 data reflects a continued evolution of the life sciences lending market toward larger and more flexible financing structures. Median total commitments increased to $112.5 million in 2025, continuing a steady rise from $55 million in 2021, while delayed draw commitments and discretionary tranches have become increasingly common features of the market. At the same time, lenders appear increasingly willing to finance development-stage companies, with 54% of 2025 borrowers lacking an approved product at closing, compared to 43% in 2024. Despite this increased risk tolerance, lenders have trended toward more conservative economic terms in some other areas, as evidenced by a significant decline in PIK interest features. The market has also continued to coalesce around longer-dated facilities, with five-year initial maturities now representing the substantial majority of transactions.
While some portions of the underlying documents were redacted, the publicly available disclosures still provided a robust foundation for analyzing current market trends. We hope this study serves as a practical tool for borrowers, lenders and their advisors as they navigate this specialized market.
If you would like to learn more about the findings in the study, please feel free to reach out to us.
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