European biotech is poised for a record year in venture capital (VC) funding, yet significant disparities with the US market persist.
As of this year, European biotech startups have attracted approximately €800 million (around $912 million) in investments, which represents a substantial portion of the expected total for 2025. Current trends suggest that the total funding could exceed the previous record of €1.2 billion set in 2018. While the number of funding rounds is projected to increase slightly compared to last year, the average deal size remains lower than the peak of €3.5 million seen in 2024.
Noteworthy funding rounds include a CHF 105 million (about $130 million) Series B for Swiss startup Nuclidium, and a $115 million Series A for RQ Bio, a London-based company focused on therapeutics for immunocompromised individuals. The uptick in deal activity can be attributed to several successful fund closures, including Jeito Capital's impressive $1.2 billion VC fundraise and Kurma Partners' €215 million fourth biotech fund.
Despite Europe capturing 20.5% of global biotech funding—the highest share since 2018—the gap with the US remains pronounced, with American biotech fundraising being three times that of Europe this year. This disparity is driven in part by a stronger emphasis on AI in the US market. The European Life Sciences Coalition has called for increased public and private investment to strengthen the region's biotech ecosystem, highlighting challenges such as fragmented capital markets and regulatory hurdles. Additionally, the European Biotech Act aims to streamline processes and enhance funding access to help close the competitive gap with the US and China.