Trends from the Trenches: What Lies Ahead in Bioinvestment

By Bio-IT World Staff 

February 10, 2026 | After a turbulent few years for biotechnology, investors and entrepreneurs are recalibrating. That shift was the main topic of conversation in the most recent Trends from the Trenches episode, with John Keilty, venture partner at Third Rock Ventures, and host Eleanor Howe, founder and CEO of Diamond Age Data Science. 

Keilty described an industry that has moved decisively away from long-horizon discovery plays toward faster, more disciplined paths to human data. “Ten years ago—even five years ago—you could build a platform company and show investors that you were creating value purely in a discovery mode. That is just not the case anymore, right?”  

Investors now expect companies to reach the clinic quickly, pushing startups to design programs that generate meaningful clinical data within a short period of time. This emphasis has reshaped both technology choices and company structures. Biologics—particularly antibodies—are increasingly favored because they can advance to the clinic faster than de novo small molecules. When small molecules are pursued, Keilty noted, companies often start with existing chemical matter rather than building from scratch, compressing timelines, reducing risk, and cutting costs. 

The post-COVID market correction has also forced a reckoning. During the pandemic, unprecedented capital flooded the biotech space, enabling companies to go public or raise large Series A rounds without clinical data. Many of those firms were left vulnerable and with no money when market conditions tightened. “You can have cool science, but that is not enough to build a company,” Keilty says. 

Another notable change is the evolving role of computational biology. Once considered a support function, computational biology now has a “strategic seat at the table.” Advances such as AlphaFold and machine learning–driven antibody design have made computation integral to early discovery, while large language models are improving productivity across research, engineering, and operations. 

To learn more about the AI bubble, new bioinvestment ventures, and how new companies are starting up in this new climate, listen to the Trends from the Trenches episode here.