Core Insights - The gene therapy (CGT) sector is experiencing a significant decline in venture capital investment, with deals dropping by approximately 61% from 2021 to 2025, and CGT-specific deals decreasing by 66% in the same timeframe [1][2] Industry Trends - Half of the CGT venture capital activity is concentrated in Series B funding, indicating a shift from platform validation to clinical studies, reflecting a broader trend in the pharmaceutical industry towards less risky targets like obesity drugs and antibody-drug conjugates (ADCs) [2] - The average value of CGT venture capital deals is currently around $60 million in 2025, which is notably lower compared to other modalities, highlighting a decrease in deal frequency and value [3] Market Dynamics - The peak activity for venture capital in the CGT sector occurred in 2021, but commercial challenges have led some companies to withdraw from the space despite the presence of approved CGT therapies in major markets like the US and Europe [4] - Companies such as Galapagos and Takeda have recently exited the cell therapy sector, indicating a shift in focus towards small molecules, biologics, and ADCs [5] Acquisition Strategies - There is ongoing interest from biopharma companies in CGT technologies, primarily through acquisitions rather than in-house development, with a focus on platforms and scalable manufacturing systems [6] - Eli Lilly has been notably active in the CGT space, investing $475 million in a licensing deal for ophthalmology gene therapy and acquiring Adverum Biotechnologies for over $260 million, along with a $1.3 billion investment in Rznomics for RNA-based gene therapies [6]