March 2025 Life Sciences Update

The Funding Market Rally Gathers Pace

09

CONTENTS

Venture Capital Life Science Funding and Real Estate Investment

• European life sciences VC funding significantly improved in 2024, with volumes rising 19.4% by the end of the year. • The deal count continued to decline by 18.7% as funders focused on bigger deals, but life sciences funding outpaced the broader VC market over the year, taking a 14.3% market share compared to 11% a year ago. • The UK, Switzerland, France and Germany led the way, accounting for 71% of VC funding in the past year, with the strongest growth seen in Austria, Switzerland, Germany and the UK. • Late-stage funding has driven the recovery to date, but increased interest in early-stage companies is expected in 2025 as confidence improves. • However, signs of a recovery in the funding environment are yet to be reflected in the real estate investment market, with investment in R&D assets down 5% in the past year to €1.4 billion. • Geographical trends have varied, with the UK and Germany leading as the largest markets, accounting for 94% of all R&D trades in the past year, followed by France and the Netherlands. • The R&D sector underperformed compared to the broader property investment market, posting a decline in its market share, while other niche operational sectors, such as self storage and data centers, outperformed.

Venture Capital

R&D Property Investment

14,000

6,000

12,000

5,000

10,000

4,000

8,000

3,000

6,000 VC Funding Euro mn

R&D Property Investment (€mn pa)

2,000

4,000

1,000

2,000

0

0

17Q4 18Q2 18Q4 19Q2 19Q4 20Q2 20Q4 21Q2 21Q4 22Q2 22Q4 23Q2 23Q4 24Q2 24Q4

Source: Pitchbook, RCA, Cushman & Wakefield

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Cushman & Wakefield