Investors are still waiting for the other shoe to drop on a slowdown in deal flow

Dealmaking has yet to slow down, and investors differ on when or if that will happen

The fear has been that a slowdown in venture financing and partnering is inevitable, due to both restrictions in travel and the market implosion. But there are few signs of a slowdown yet, and it’s not yet clear when or if the lag will happen, or what it will look like.

In BioCentury’s survey of biopharma businesses from the first week of March, 62% of respondents said they were concerned about their company’s ability to raise money. Companies also reported canceling or postponing roadshows, investor meetings and partnering meetings (see “BioCentury Survey Finds Action Lags Concern About COVID-19’s Business Impact”).

But so far, those fears haven’t borne out. VCs aren’t seeing a meaningful drop in deal flow, and when it comes to raising private capital, the numbers suggest it’s been business as usual.

According to BioCentury’s BCIQ database, fund-raising in 1Q20 is on par with previous quarters, with $5.71 billion raised, compared with the quarterly average of $5.93 billion in 2019, from 160 financings, compared with an average of 162 financings per quarter last year (see “1Q20 Venture Financing on Par with Prior Quarters”).

Figure: Venture financing during COVID-19

Despite the public market downturn that began in

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