Building resilient ecosystems in uncertain times

Shaping great companies from research is hard, and building funds for early-stage investments has become an increasingly tougher task for VCs all over Europe. There’s a great need to mobilize larger investors outside our ecosystem to recognize and understand the opportunities in life sciences, while continuing to nudge more talented scientists to become entrepreneurs.

Geopolitical headwinds

None of this is new, but the challenges have been exacerbated  by geopolitical headwinds, which are increasingly affecting Nordic venture investors and portfolio companies. Adding to the complexity, supply chains, access to talent, and regulatory frameworks are all less stable than they were a few years ago.

So what should investors and entrepreneurs do when the map keeps changing?

First, we need to acknowledge the funding and policy volatility companies face when they rely heavily on the US system. The US has experienced disruptions that have temporarily paused or delayed parts of the federal research and grants machinery, substantially affecting startups’ runway planning and trial timelines. And for companies targeting the US market, shifting policy signals and regulatory confusion add real uncertainty to development strategies. Overall, for companies, caution has become all important.

For some companies, that may mean being even more agile and obtaining optionality when choosing partners in manufacturing, and prioritizing Europe or selected Asian markets earlier than planned, while keeping the US option open.

Uncertainty calls for a mitigation mindset: we must diversify regulatory and commercial pathways. For some companies, that may mean being even more agile and obtaining optionality when choosing partners in manufacturing, and prioritizing Europe or selected Asian markets earlier than planned, while keeping the US option open. In times like these, the investors’ role as ecosystem builders has become more important.

Preparedness as opportunity

Necessity is the mother of invention. Novel therapeutics, rapid diagnostics, and scalable platform technologies that can be tuned and deployed speedily when the next crisis hits are all important focus areas going forward, both for investors and for society.

Preparedness is not only a public-sector responsibility; it is a capability society must maintain. The EU is explicitly moving in that direction, treating preparedness as an “all-hazards” and whole-of-society effort, and strengthening stockpiling and medical countermeasure capacity.

If medicine preparedness capacity is to exist in the Nordics tomorrow, it must be financed locally today.

If medicine preparedness capacity is to exist in the Nordics tomorrow, it must be financed locally today. We must ensure the viability of the Nordic startup ecosystem by securing sufficient early-stage, specialized risk capital to support companies through preclinical development, proof of concept, and initial clinical milestones – stages that global markets are unwilling to finance.

In times of uncertainty and conflict, life science innovation becomes more critical than ever.

In times of uncertainty and conflict, life science innovation becomes more critical than ever, and the cluster’s role to gather all good forces around the same table to discuss challenges and solve problems has never been more important. One example is the 7th Life Science Investor Partnering Day, which will take place in Oslo on April 16 – where The Life Science Cluster gathers investors (i.a Innovestor) TTOs, startups, and service providers to meet and help each other navigate these challenges.

We believe this is the solution to the uncertainties that lie ahead of us: building larger, more resilient ecosystems that serve companies, scientists, and society as a whole.