Trillions Within Us: The Microbiome First Unicorns

As humans, we often think of ourselves as solitary entities, with our thoughts and actions driven solely by our own decisions and experiences. However, recent research has shown that this could not be further from the truth. In fact, there are trillions of microorganisms living inside and on our bodies, collectively known as the microbiome, that play a crucial role in our overall health and wellbeing. From our digestion and immune system to even our mood and behavior, the microbiome has a profound impact on our daily lives.

Kallyope, a New York-based biotech company focused on developing therapies targeting the gut-brain axis, became the first microbiome technology company to reach unicorn status in 2022 after raising $236 million from Mubadala and TheColumn Group. This success put a spotlight on the potential of microbiome technology, and since then, the sector has continued to attract venture capital.

DALL·E 2 — The Microbiome and Venture Capital

Following extensive discussions with industry experts and thorough analysis, we have developed a positive outlook for the growth of microbiome therapies in the next five years, particularly in the next generation of therapies focused on mapping gene clusters and controlling the expression of secondary microbiome metabolites. In addition, we have conducted a comprehensive mapping of the companies and labs driving innovation in this field, providing valuable insights into the key players in the microbiome technology segment.

Our research has led us to the following key takeaways:

1. In 2022, the microbiome domain saw a significant increase in VC stage investments, with $908 million invested across 84 deals, in addition to 7 IPO/M&A deals.
2. More than 15 microbiome-based therapies are currently in Phase I, 21 are in Phase II, and 5 are in Phase III, indicating a growing pipeline of potential treatments.
3. The most advanced indications for microbiome-based therapies are diseases of the gastrointestinal tract, such as C. Difficile infection and IBD, followed by cancer and autoimmune diseases. Although drug discovery for neurological diseases is a relatively new area, it is actively developing.
4. The industry’s current focus is on biosynthetic gene clusters that code for bacterial secondary metabolites in their genome. These metabolites have been shown to have a significant impact on human health, with the efficacy of checkpoint inhibitor therapy being doubled when combined with SCFA.
5. The recent emergence of engineered bacteria technology has generated high expectations for the field. Novome has secured $43.5 million in Series B financing to advance ongoing Phase 2a clinical trials in patients with enteric hyperoxaluria.

For a more detailed analysis of the microbiome technology landscape and the potential for future growth, we invite you to explore the full report that inspired this article. Click here to access the report and discover more about the latest developments in this exciting field.