Life Sciences Funding in View: 2025 Outlook

Global Funding

Slight Recovery in 2024

The IPO sector remained subdued but saw slight growth in 2024, with offerings totaling $11.6 billion (+22% YOY). IPO deal activity in APAC declined for the second consecutive year, totaling $2.4 billion (-4% YOY). Europe experienced a surge of activity, with IPOs totaling $2.8 billion (+3,000%) after a weak 2023. Offerings in North America remained subdued, totaling $4.4 billion (-10% YOY), despite initial market optimism. U.S. companies continued to dominate the list of top 10 global deals, with the only billion-dollar deal awarded to AI drug discovery startup Xaira Therapeutics, based in the San Francisco Bay Area. CRE VIEW: Improving deal activity in life sciences bodes well for the CRE sector. Well-capitalized companies are better positioned to make longer-term capital expenditure decisions, including increasing headcount and expanding their footprint.

• Public and private life sciences investment deal volume ticked up in 2024. Global VC volume totaled $45.3 billion, up 4% YOY. While still below the recent cyclical peak, it was 6% higher than the previous 10-year

average, signaling positive momentum for life sciences investment. Regionally, APAC continued to experience a VC

pullback, with deal activity totaling $5.2 billion (-45% YOY). Both Europe and North America posted deal volume increases in 2024: European VC deals totaled $8.6 billion (+19% YOY) and North America reached $31.5 billion (+17% YOY) nations saw declines, including China, where deal volume fell to $3.8 billion (-52% YOY). Most European countries saw deal activity increase, including the UK, where deal volume totaled $3.1 billion (+34% YOY). In the Americas, U.S. activity rose to $30.5 billion (+16% YOY).

• At the country level, most APAC

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LIFE SCIENCES JANUARY 2025