Created in association with Invest Europe, the coalition brings together European life sciences venture capital firms, research institutions, and other stakeholders across the value chain. The ELSC members collectively manage more than EUR 24 billion in life sciences-specific assets and have invested in, or helped found, over 1,400 life sciences and biotechnology companies.

ELSC members and Nordic relevance

Members of the ELSC include Cooley (UK) LLP, Covington & Burling LLP, Forbion, HealthCap, Novo Holdings, Omega Funds, Sofinnova Partners, Van Lanschot Kempen and the Flanders Institute for Biotechnology (VIB).

ELSC is important because it aims to strengthen Europe’s capital base, mobilize institutional investors, and position life science as a strategic industry. Without stronger European funding structures, Nordic innovation risks being scaled and commercialized elsewhere

“The Nordic region has world-class research, strong clinical infrastructure, and a long track record of innovation in life sciences. The Nordic region faces a structural capital gap, especially in the scale-up phase. ELSC is important because it aims to strengthen Europe’s capital base, mobilize institutional investors, and position life science as a strategic industry. Without stronger European funding structures, Nordic innovation risks being scaled and commercialized elsewhere,” says Mårten Steen, Managing Partner, HealthCap to NLS.

The launch comes at a pivotal moment for Europe

The creation of the ELSC responds to growing concern that, despite strong scientific foundations and entrepreneurial talent, Europe is increasingly unable to scale and retain its life sciences innovation. Structural barriers, including the underutilization of private savings, fragmented capital markets, low (and decreasing) numbers of specialized VC firms, and slow and uneven regulatory processes, continue to limit access to growth capital and push promising companies to seek financing elsewhere.

The launch comes at a pivotal moment for Europe, as political leaders focus on strategic autonomy in core industries, capital markets integration, and competitiveness, the new coalition states. The life sciences sector supports around 29 million jobs across the EU, underpins public health and economic resilience, and plays a central role in the development and manufacture of life-saving medicines. Without decisive action, Europe risks a progressive hollowing-out of its life sciences VC ecosystem, with direct consequences for long-term economic growth, innovation, and patient access, ELSC states.

66 out of 67 EU biotechnology companies that went public over the past six years chose to list outside the EU.

These challenges are already visible in the data. European life sciences venture capital funds currently account for just 7% of the global market, compared with 63% in the United States and 14% in China. Even more strikingly, 66 out of 67 EU biotechnology companies that went public over the past six years chose to list outside the EU. The message from founders and investors is clear: Europe is not currently equipped to finance and scale its life sciences innovation at home.

A fundamental shift in how European capital is deployed

Through the ELSC, members aim to help reverse these trends by advocating for more effective mobilization of start- and scale-up capital and a more integrated, efficient investment environment for innovative companies, the coalition states. The coalition is not calling for handouts, but for a fundamental shift in how European capital is deployed. Working constructively with policymakers and in association with Invest Europe, the ELSC seeks to ensure that Europe not only continues to invent the future of life sciences, but also to finance, scale, and retain it, inter alia through a healthy life sciences VC ecosystem, it states.

Three priorities and the most urgent need

ELSC will focus on three priorities, describes Mårten Steen: Unlocking institutional capital by adapting regulations and mandates, building globally competitive European life science funds, and enhanced understanding of the sector’s potential.

Many companies fail to scale because of insufficient capital, not because of weak science.

“Right now, the most urgent need is access to venture capital in Europe. Many companies fail to scale because of insufficient capital, not because of weak science,” he says to NLS.

Definition of Europe

References to “Europe” in this news story encompass the European Economic Area (EEA), the United Kingdom, and Switzerland.

About Invest Europe

Invest Europe is the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors. It has over 650 members, split roughly equally between private equity, venture capital and limited partners – with some 110 associate members representing advisers to the ecosystem. Those members are based in 57 countries, including 42 in Europe, and manage 60% of the European private equity and venture capital industry’s EUR 1.25 trillion of assets under management. Businesses with private capital investment employ 11.2 million people across Europe, 5% of the region’s workforce.