What do you predict will be the dominant market trend within life sciences this year?

“After a slower 2023, investor appetite rebounded in 2024. We believe that the resurgence of larger financing rounds will be a significant market trend in life sciences in the Nordics this year. This mirrors a broader trend seen in the US, where companies in therapeutics have been raising increasingly large rounds, albeit that in Europe this happens on a smaller scale.”

We need to work hard to secure the continuity and development of a healthy VC market and funding landscape in the Nordics.

How would you describe the current venture funding landscape in the Nordics?

“The life science specialist venture-capital fund teams are extremely knowledgeable, well networked, and have close relationships with each other. However, most of the funds are emerging funds and fairly small in size, which limits their possibilities in follow-on funding rounds. We need to work hard to secure the continuity and development of a healthy VC [venture capital] market and funding landscape in the Nordics.”

From your perspective, how has the life science sector developed since the COVID-19 pandemic?

“The sector has undergone significant transformation, especially in terms of growing recognition and interest in advanced therapies including mRNA and gene therapies, and widespread adoption of digital solutions, such as tele-health and remote patient monitoring.”

Many European biotechs are now reconsidering their clinical development and regulatory strategies to mitigate risks, for example related to uncertainties with the FDA.

Due to current global events, for example the new US administration, have you noticed a shift towards strategic near-shoring and a greater focus on the European (or Chinese) life science ecosystem?

“We’ve noticed an immediate and concrete impact on our portfolio companies. Many European biotechs are now reconsidering their clinical development and regulatory strategies to mitigate risks, for example related to uncertainties with the FDA.”

How does the Nordic/European market compare to the US?

“The market is obviously smaller in the Nordics/Europe, but it has some unique advantages that differentiate it and make it compelling to US investors. These include research-driven, collaborative, and innovative life science ecosystems, availability of lucrative soft funding instruments, significant focus on sustainability, high rate of digitalization of healthcare systems, and very reasonable early-stage valuations.”

What do you predict when it comes to M&A activity in the Nordic life science industry this year?

“Pharma relies heavily on inorganic growth, which provides great opportunities for Nordic biotechs. While the total M&A deal activity has decreased, mainly due to a smaller number of mega-deals, deal-making activity is moving from commercial/late-stage assets to the earlier phases. The volumes of preclinical and phase I stage deals doubled in 2024. This is good news to many early-stage innovative Nordic startups.”

What advice do you have for small and mid-sized Nordic life science companies looking to raise capital? 

“In the current market environment fundraising still takes time. Start talking to investors well before you need more capital. Building a syndicate, aligning everyone’s interests and closing the investment can take more than 12 months even for the most investable companies. During the process, keep in mind that investors communicate with each other. Ensure your messaging remains consistent and be realistic with expected funding terms.”

On a positive note, I believe we continue to see strong interest in central nervous system diseases and metabolic disorders.

Anything you would like to add when it comes to predicting the life science financial landscape in 2025?

“Overall, the few biotech IPOs in 2024 weren’t particularly successful, which suggests that VC fund-raising will remain challenging. Additionally, I’m concerned that Trump’s tariffs are set to hit economic growth, and the uncertainties surrounding pharmaceutical tariffs could slow down big pharma’s global M&A activity. On a positive note, I believe we continue to see strong interest in central nervous system diseases and metabolic disorders. This investment activity is being catalyzed by big pharma players re-entering the neurodegenerative disease space and addressing the unmet needs with existing GLP-1 drugs.”

4 x criteria for investment in 2025

What factors do you consider particularly important in order to invest in a company right now?

  1. A clear competitive edge supported by solid scientific evidence.
  2. Strong underlying unmet needs driving market opportunity and defendable IP rights or other forms of barriers to entry for competitors.
  3. Clarity in plans and budgets highlighting meaningful value inflection points and opening windows for exit.
  4. Syndication of investments, not only to financially de-risk but also to bring wide expertise and networks.