Despite challenging national trends, Greater Philadelphia’s impressive $3.3 billion in venture capital funding across 444 deals in 2024 highlights the region’s resilience and growth in the venture capital landscape.

According to the Philadelphia Alliance for Capital and Technology’s (PACT) and PitchBook’s annual Philadelphia Venture Report, released on February 27, 2025, this figure is up from $2.4 billion across 403 deals in 2023.

The 2024 report indicates that the Philadelphia region’s ecosystem showed remarkable strength, particularly at the early-stage levels, and demonstrated the market’s ability to attract significant investments, even in a challenging environment. This success is largely attributed to Greater Philadelphia’s robust startup environment and its leadership in the life sciences, healthcare, and technology industry sectors.

“Life sciences remains a pillar of the region’s venture and innovation ecosystem, bolstered by local academic powerhouses and favorable initiatives, as exemplified by the recent founding of GEMMABio, showcasing the region’s commitment to advancing cell & gene therapies,” the report states.

The Philadelphia market, which includes Philadelphia-Camden-Wilmington Metropolitan Statistical Area, ranked fifth nationally in terms of deal volume, according to the Q4 2024 PitchBook-NVCA Venture Monitor.

Key Highlights from the 2024 Philadelphia Venture Report: 

  • Total Funding: In 2024, Philadelphia’s startups raised $3.3 billion across 444 deals, a 37.5% increase from $2.4 billion across 403 deals in 2023. The average deal size also increased by 34.4% year over year. 
  • Early-Stage Resilience: The region maintained strong pre-seed and seed financing activity, paving the way for future growth. 
  • Sector Diversity: Life sciences led the funding, with biotech and pharmaceutical companies making up six of the top ten deals. Enterprise technology and B2C companies also showed strong performance. 
  • Exit Activity: There were eight more exits in 2024 compared to 2023, indicating a healthy cycle of investment and reinvestment. 

Philadelphia’s competitively low cost of living, compared to other major venture hubs, continues to make it an attractive destination for startups, as demonstrated by the region’s ranking as a top 25 global startup ecosystem by Startup Genome. 

Looking Ahead

The Greater Philadelphia region is well-positioned to build on this success, fostering innovation and entrepreneurship across various industries. 

According to a recent Philadelphia Business Journal article on the report, local innovation leaders predict that funding will loosen in 2025 and continue to increase. Of the local startups raising funds last year, software firms had the largest share, accounting for nearly 60% of venture capital deals. Combined, the 208 deals totaled $1.1 billion raised, according to the report. 

New this year, the report included analysis of investment trends in AI, where artificial intelligence startups captured a significant share of the funding, totaling $576 million of equity funding in 2024, compared to $415.9 million over 133 deals in 2023. 

In 2024, there were 36 local exits, the highest number since 2019. PACT CEO Dean Miller and Ben Franklin Technology Partners of Southeastern Pennsylvania CEO Scott Nissenbaum shared with Philadelphia Business Journal (PBJ) Reporter Ryan Mulligan their predictions that these exits indicate strong potential for increased investment in startups.

Nissenbaum called 2024 a “return to the norms” after the highs and lows of the past few years, adding that startup founders should be hopeful for what’s ahead, telling PBJ’s Mulligan, “I would expect 2025 to be a much better year. I think the IPO market is starting to open up and I think you’re starting to see dollars flow from balance sheets into that money being used and deployed.” 

The report states, “A rebound in liquidity, coupled with strategic investments in high-potential sectors like tech and life sciences, could position Philadelphia’s private markets for renewed growth in the coming years.”

PACT partners with regional organizations, including the Chamber of Commerce for Greater Philadelphia (the Chamber), to develop strategic and innovative initiatives that encourage entrepreneurial growth in Greater Philadelphia. Its annual Philadelphia Venture Report, which was sponsored in part by the Chamber, is one of those initiatives.

For information on the Chamber’s efforts to strengthen the region’s innovation economy, visit the Select Greater Philadelphia website and join us in amplifying PACT’s 2024 Philadelphia Venture Report by sharing it with your professional networks.