STAT+: European VCs Band Together to Improve the Landscape for Biotech Startups

Why It Matters

Closing the capital shortfall is critical for retaining high‑growth biotech firms in Europe and enhancing the region’s competitiveness against the United States and Asia.

Key Takeaways

• European VC coalition formed to boost biotech funding
• Only 1 of 67 EU biotech IPOs listed within EU
• Members include Forbion, HealthCap, Novo Holdings, Sofinnova
• Coalition will lobby for supportive life‑science policies
• Goal: close capital gap for later‑stage European startups

Pulse Analysis

Europe’s biotech sector has long wrestled with a fragmented venture ecosystem, where early‑stage seed money is available but later‑stage growth capital remains scarce. Compared with the United States, where deep‑pocketed funds and a mature secondary market fuel rapid scaling, European firms often seek listings abroad to access liquidity. This capital mismatch hampers R&D pipelines and discourages talent retention, contributing to a brain‑drain toward more investor‑friendly jurisdictions.

The newly formed European Life Sciences Coalition brings together heavyweight investors—Forbion, HealthCap, Novo Holdings, Omega Funds, Sofinnova Partners—and specialist law firms Cooley and Covington & Burling. Their coordinated strategy targets two fronts: pooling resources to create larger, cross‑border funds and lobbying EU policymakers for tax incentives, streamlined regulatory pathways, and public‑private partnership models. By aligning investment criteria and sharing deal flow, the coalition aims to deepen the pool of late‑stage capital, making it easier for promising startups to scale without exiting the EU.

If successful, the coalition could reshape the European biotech landscape, encouraging more companies to stay and list domestically, thereby retaining intellectual property and high‑value jobs. Investors stand to benefit from a more liquid market and diversified exit options, while policymakers gain a clearer roadmap for fostering a competitive life‑science hub. The initiative signals a decisive shift toward a more integrated, well‑funded European biotech ecosystem, positioning the continent to compete more effectively on the global stage.