Funding Drought Puts Pressure on Cell Therapy Startups Like Appia Bio
Biotech funding has experienced a significant decline in 2025, with overall venture capital for the sector dropping in Q2 and many companies facing shorter cash runways14.
As of mid-2024, 39% of biotechs had under a year of cash available—a marked increase versus previous years—underscoring industry-wide concerns about a capital drought1.
Appia Bio, a Los Angeles-based cell therapy startup, raised $52 million in Series A financing in 2021 to develop allogeneic cell therapies for cancer, using its ACUA platform and CAR-iNKT technology235.
There is no direct, recent report of Appia Bio specifically running out of cash or being subject to immediate financial distress, but their funding status should be interpreted in the context of the broader challenges facing early-stage biotech companies14.
Industry leaders recommend that companies respond to the funding drought by narrowing focus to their core development assets, optimizing investor engagement, and seeking non-dilutive funding strategies1.
Sources:
1. https://www.biospace.com/business/more-than-one-third-of-biotechs-have-under-a-year-of-cash-left-ey-finds
2. https://www.appiabio.com/news/appia-bio-launches
3. https://www.biosciencela.org/newsarchive/2021511/with-52-million-series-a-appia-bio-anticipates-a-bright-future-in-cell-therapy
4. https://www.biopharmadive.com/news/biotech-venture-capital-funding-h1-2025-hsbc/753283/