Formation Bio is an AI-powered drug development platform specializing in accelerating clinical trials for therapeutic areas such as dermatology and orthopedics. Founded in 2016 by Linhao Zhang and Benjamine Liu, the company is headquartered in New York City, United States and has raised around $608 million to date.
With its tech-native approach, Formation Bio partners with pharmaceutical and biotech firms to in-license or acquire assets, then deploys automated and AI-driven workflows, such as patient recruitment, adverse-event reporting, and trial-design optimization, to bring new treatments to patients more efficiently.
What Is Formation Bio and What Does It Do?
Formation Bio, founded in 2016 by Linhao Zhang and Benjamin Liu, is based in New York City, United States. With a team focused on combining biotech and AI, the company uses generative AI, LLMs, and modern data systems to discover, in-license, and develop drugs more efficiently, targeting conditions such as atopic dermatitis, chronic hand eczema, and knee osteoarthritis.
It offers a full-stack solution for the drug-development lifecycle, from patient recruitment and tele-consent to data-driven trial execution, enabling biotech and pharma partners to operate at a higher speed and lower cost.
How Much Funding Has Formation Bio Raised?
- Series B
- Amount Raised: $80 M
- Date: 2018
- Lead Investors: Thrive Capital, Sequoia Capital
- Motivation: To scale early platform development and build an assets pipeline.
- Series C
- Amount Raised: $156 M
- Date: September 2021
- Lead Investors: Willett Advisors, Sequoia Capital, Thrive Capital, Dragoneer, ArrowMark Partners
- Motivation: To expand AI-enabled drug-development capabilities and build clinical pipeline.
- Series D
- Amount Raised: $372 M
- Date: May 2024
- Lead Investors: Andreessen Horowitz, Sanofi, Sequoia Capital, Thrive Capital, Emerson Collective, FPV Ventures
- Motivation: To acquire/in-license candidate drugs and accelerate AI-driven workflows in drug development.
Total Funding Raised: $608 Million
Latest Funding Date: May/June 2024
Current Valuation: $1 Billion (as of June 2024)
Key Investors
- Andreessen Horowitz
- Details: Leading Silicon-Valley venture firm focused on technology and software.
- Investment Focus Areas: AI, fintech, biotech.
- Notable Investments: GitHub, Stripe, Formation Bio.
- Sequoia Capital
- Details: Global VC firm with a profound legacy in tech and early-stage companies.
- Investment Focus Areas: Technology, healthcare, software.
- Notable Investments: Apple, Google, LinkedIn, Formation Bio.
- Thrive Capital
- Details: Venture firm investing in software, biotech, and consumer companies.
- Investment Focus Areas: Technology, Health Tech, Biotech.
- Notable Investments: Formation Bio, Zoom, Roblox.
Where Is Formation Bio’s Headquarters?
Formation Bio is headquartered in New York City, United States. Located within one of the world’s largest biotech/financial hubs, the company benefits from proximity to major pharmaceutical companies, venture capital networks, and a deep talent pool of biotech and AI engineers.
What’s Next for Formation Bio?
Formation Bio is poised for growth as it leverages its AI-native platform to accelerate drug development, reduce trial time and costs, and deliver new treatments in fields such as dermatology and orthopedics. With the recent $372 million Series D funding, the company plans to in-license or acquire clinical-stage assets, deploy generative AI workflows, and partner with major pharmaceutical players (e.g., Sanofi) to scale globally.
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