Life Sciences Funding in View: 2025 Outlook

Life Sciences Funding In View

Key Findings

• Globally, life sciences venture capital (VC) and initial public offering (IPO) volume ticked up in 2024, with the U.S. leading activity, followed by China and the UK. • Mergers and acquisitions (M&A) volume declined in 2024 as pharmaceutical (pharma) companies made smaller bets. However, increased activity is expected in 2025. • While U.S. VC investment volume grew year-over-year (YOY), IPO activity fell short of expectations. With some uncertainty — such as interest rate cuts and the presidential election — behind us, some clarity bodes well for the sector.

• Although funding flows are projected to rise in 2025, lessons learned in the past couple of years will remain. Companies must continue demonstrating financial discipline and clinical trial success. Investors are likely to explore higher-risk opportunities in search of innovative companies.

• The funding slowdown in the life sciences sector has affected

commercial real estate (CRE), with further softening in U.S. life sciences fundamentals in 2024. Increased activity in 2025 could signal the start of a CRE recovery.

2 / CUSHMAN & WAKEFIELD

LIFE SCIENCES JANUARY 2025