Global gene editing startups are raising investment rounds to fund research and development

The advancement in genome-editing technologies, also known as gene editing, is driving venture capital and private equity funds' interest in emerging startups. Notably, the technology is being explored in a range of diseases, such as rare single-gene disorders. These include sickle cell disease, cystic fibrosis, and hemophilia. In addition to this, gene editing technology is also getting used for the treatment and prevention of diseases s uch as cancer, human immunodeficiency virus, and cardiovascular diseases.

Along with its application in the human healthcare sector, gene editing technology is also finding its use cases in the agricultural sector. Many innovative startups have emerged in the segment over the last few years. Notably, gene editing startups, to advance their research and development in the space, are raising funding rounds from global investors. In 2021, more than US$1 billion were raised by gene editing startups in venture capital funding. This trend has further continued in 2022.

Even though the biotech sector has been vulnerable to the public market downturn in 2022, the difficult environment has not stopped global gene editing startups from raising funding from venture capital firms. For instance,

In January 2022, Metagenomi, a United States-based gene editing startup, announced that the firm had raised US$175 million in its Series B funding round. Notably, the funding round comes three months after the firm partnered with Moderna. The firm plans to use the Series B investment to expand and build on its research that explores new ways to edit genes.
The firm claims that it can mine large datasets of microbial DNA, which can help in identifying new CRISPR-based enzymes that are capable of editing genes in a way to improve the Cas9 enzyme. Currently, all of the work by Metagenomi is in the preclinical stages. However, this funding round should assist the firm in advancing its research, potentially to the point where it can begin human testing.

Notably, the US$175 million raised by Metagenomi is sizeable and a testament to the growth potential of the sector from the medium to long-term perspective, given the fact that 2022 has been a tough year for startups to raise venture capital funds. Apart from Metagenomi, several other gene editing startups have raised funding rounds globally. For instance,

In May 2022, Locus Biosciences, a United States-based gene editing startup, announced that the firm had raised US$35 million as part of its Series B funding round. The investment round included participation from notable investors such as Tencent Holdings, Artis Ventures, Viking Global Investors, Discovery Innovations, and JJDC, Inc.
The firm is planning to use the funding round to further support the advancement of LBP-EC01, precision medicine, that the firm has developed to combat recurring urinary tract infections caused by E. coli. In H2 2022, the firm plans to initiate Phase 2 and 3 trials. Notably, it completed Phase 1b clinical trials in 2021.
In July 2022, Epic Bio, another United States-based gene editing startup, announced that it had raised US$55 billion in its Series A funding round. Notably, the firm is developing therapies for modulating gene expression. The Series A investment raised by the firm is expected to support the preclinical programs of Epic Bio.
Spotlight Therapeutics Inc, the gene editing startup in the United States, announced that it had raised US$36.5 million in its Series B funding round in March 2022. The firm plans to use the investment to push forward with clinical trials using the CRISPR gene editing technology initially as cancer immunotherapy. The Series B funding round was co-led by GordonMD Global Investments and EIPQ Capital Group.
Other startups that have raised investment in the space in 2022 include US-based Napigen (US$7.9 million in seed funding) and Apertura Gene Therapy (raised up to US$67 million) and India-based Helex (US$1.1 million), and Immuneel Therapeutics (US$15 million in Series A financing round).
- Notably, Immuneel Therapeutics is working on the development of chimeric antigen receptor T-Cell therapies as well as other immunotherapies for the management and treatment of cancer. The firm has also entered into Phase 2 human trials as of June 2022.

The recent advancement in the space by these innovative startups has opened up new avenues in drug discovery and medicines. With the enormous potential of gene editing techniques such as CRISPR beginning to be realized in terms of treating and preventing complex and rare diseases, including cancer.