Key Takeaways
- • Five neurology-focused startups have together raised around $450 million in recent weeks, lifting 2026 neuroscience venture funding to $664 million by mid-November, according to BioPharma Dive data.
- • London-based Oyster Therapeutics raised $60 million in a Series A round led by 4BIO Capital, with participation from eight other parties including Eli Lilly, to degrade a protein tied to Alzheimer's disease.
- • Neuroscience VC funding totaled $1.09 billion in 2023, $1.58 billion in 2024 and $1.9 billion in 2025 across 26 prolific venture firms, per BioPharma Dive's compilation.
- • Public investors reacted unevenly to cell therapy data presented at the American College of Rheumatology meeting, with Nkarta, Allogene and Fate Therapeutics each falling more than 20% between Nov. 6 and Nov. 12.
- • PepGen shares surged more than 90% after a mid-stage myotonic dystrophy type 1 study showed its drug corrected 46.5% of splicing errors, a result Leerink Partners analyst Joseph Schwartz called evidence of best-in-class potential.
Summary
Venture investment in neuroscience has regained momentum after a slower 2026. According to data compiled by BioPharma Dive, startups focused on the central nervous system raised $1.09 billion, $1.58 billion and $1.9 billion from 26 prolific venture firms in 2023, 2024 and 2025, respectively. The 2026 total stands at $664 million as of mid-November, below the prior year's pace but supported by a recent cluster of financings.
This week, London-based Oyster Therapeutics said it raised $60 million in a Series A round led by 4BIO Capital, with participation from eight other investors including pharmaceutical company Eli Lilly. Oyster is developing treatments to degrade a protein with ties to Alzheimer's disease. Separately, Setara Therapeutics, Delix Therapeutics, VectorY Therapeutics and Neurosterix disclosed fundraising since the end of October, collectively raising around $400 million. Together with Oyster, these five rounds added roughly $450 million to this year's total.
In public markets, cell therapy developers presenting at the American College of Rheumatology annual meeting drew a mostly negative investor response. The data covered therapies aimed at immune disorders such as lupus and systemic sclerosis. Cabaletta Bio, based in Philadelphia, reported early, encouraging results for its therapy rese-cel across three diseases, and its share price rose roughly 5% after the prior week's market close. By contrast, Nkarta, Allogene Therapeutics and Fate Therapeutics each fell more than 20% from Nov. 6 to Nov. 12, while CRISPR Therapeutics declined nearly 15%.
The strongest performer over the period was PepGen, whose experimental treatment for myotonic dystrophy type 1 showed, on average, 46.5% correction of the splicing errors that characterize the disease, according to the company. PepGen described this as the highest level of splicing correction seen in a study testing multiple doses for this condition, and its stock rose more than 90%. Joseph Schwartz of Leerink Partners wrote that the figure exceeds results seen with rival therapies from Novartis and Dyne Therapeutics, noting that while cross-trial comparisons remain imperfect, the magnitude and consistency of the results support clear best-in-class potential.
This week, London-based Oyster Therapeutics said it raised $60 million in a Series A round led by 4BIO Capital, with participation from eight other investors including pharmaceutical company Eli Lilly. Oyster is developing treatments to degrade a protein with ties to Alzheimer's disease. Separately, Setara Therapeutics, Delix Therapeutics, VectorY Therapeutics and Neurosterix disclosed fundraising since the end of October, collectively raising around $400 million. Together with Oyster, these five rounds added roughly $450 million to this year's total.
In public markets, cell therapy developers presenting at the American College of Rheumatology annual meeting drew a mostly negative investor response. The data covered therapies aimed at immune disorders such as lupus and systemic sclerosis. Cabaletta Bio, based in Philadelphia, reported early, encouraging results for its therapy rese-cel across three diseases, and its share price rose roughly 5% after the prior week's market close. By contrast, Nkarta, Allogene Therapeutics and Fate Therapeutics each fell more than 20% from Nov. 6 to Nov. 12, while CRISPR Therapeutics declined nearly 15%.
The strongest performer over the period was PepGen, whose experimental treatment for myotonic dystrophy type 1 showed, on average, 46.5% correction of the splicing errors that characterize the disease, according to the company. PepGen described this as the highest level of splicing correction seen in a study testing multiple doses for this condition, and its stock rose more than 90%. Joseph Schwartz of Leerink Partners wrote that the figure exceeds results seen with rival therapies from Novartis and Dyne Therapeutics, noting that while cross-trial comparisons remain imperfect, the magnitude and consistency of the results support clear best-in-class potential.
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