March 2025 Life Sciences Update

Multiple Funding Sources Drive the Growth of Life Sciences

06

CONTENTS

Funding by Source

• Funding for the life sciences sector comes from three primary sources: government funding through the NIH, private investment through VC, and pharmaceutical (pharma) companies funding their own R&D. • A surge in funding from 2020 through 2022 drove increased demand for life sciences real estate, as companies expanded startups sought their first lab or cGMP facilities. remained relatively level since 2022, the steep drop off in VC funding has greatly impacted the CRE sector, softening demand for space. The recent uptick in VC funding is a positive sign that the private sector is starting to come back. A significant increase in VC funding will likely precede a recovery of the life sciences CRE fundamentals. • While both pharma and NIH funding

Pharma R&D (Domestic)

NIH

U.S. VC Funding

$200

$180

$160

$140

$120

$100

$80

Funding (in $Billions)

$60

$40

$20

$0

2010 2011

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

2022 2023 2024

Source: Clinicaltrials.gov, Pitchbook, NIH, Statista

32 32

Cushman & Wakefield