Nordic Life Science asked Ingrid Teigland Akay, Managing Partner, Hadean Ventures, about her predictions for 2024, including market trends, financing opportunities for SMEs and business strategy advice.

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

“The life science industry is in many ways in a good position. There is scientific progress, the need for medical innovation is as strong as ever with an aging population, and big pharma is keen on replenishing their pipeline. At the same time, funding for startups that are developing this innovation has become very difficult.”

We do see some concerning signs that not only impacts existing startups, but also discourages founders from starting new companies, and we see a lower rate of new startups than previously.”

“We do see some concerning signs that not only impacts existing startups, but also discourages founders from starting new companies, and we see a lower rate of new startups than previously. With this in mind, we more than previously discuss with founders pre-company formation, with the intention of helping build a syndicate and actively take part in the company creation process.”

When it comes to opportunities to find funding or financing, what’s your outlook?

“In this difficult fundraising environment, the companies with a strong and supportive investor-base will have a significant advantage. This is one of the advantages of taking on board professional life science investors that stick to the plan also in tough times.”

In this difficult fundraising environment, the companies with a strong and supportive investor-base will have a significant advantage.”

“We do see that companies that in the heyday of the pandemic took onboard generalist investors at a high valuation are now struggling, as many generalists are retracting from their non-core activities to focus on lower risk investments.”

What are some of your basic criteria to invest capital in a company? What factors will you consider especially important this year?

“There are some general aspects we always consider as fundamentals for an investment, such as unmet medical need, outstanding science, strong team, solid IP and good market opportunity, amongst other things. In addition – currently we deploy an even stronger focus on reducing financing risk. We focus on financing rounds that can take the company to a significant value-enhancing milestone and a realistic chance of exit. Building such a syndicate takes more time and effort than previously, but we are prepared to put in the legwork for it.”

What strategies can Nordic life science SMEs use to keep the lights on until funding for the sector improves?

“In these difficult times, it is crucially important to spend cautiously and not create plans and budgets that cannot be funded. It requires a laser-sharp focus on progressing the core activities of the company with the available funding.”

In these difficult times, it is crucially important to spend cautiously and not create plans and budgets that cannot be funded. It requires a laser-sharp focus on progressing the core activities of the company with the available funding.”

What new life science technologies do you believe will gain ground during 2024?

“There are a few technologies that have become rather hot lately, and we believe this will continue in 2024, such as ADCs, targeted radiopharma, and gene and RNA-based therapies. Furthermore, when it comes to indications, we see an increasing interest beyond oncology, for example in areas such as neurology and cardiovascular diseases.”

Furthermore, when it comes to indications, we see an increasing interest beyond oncology, for example in areas such as neurology and cardiovascular diseases.”

What impact will the ongoing wars and conflicts and current recessions have on life science investments in the Nordic region this year?

“The current macro-picture is creating a lot of uncertainty and risk of uncertainty. This is impacting the appetite for life science investment and will continue to make fundraising challenging in the foreseeable future.”

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

“We do see increased M&A activity, and this will hopefully also benefit Nordic life science companies. We expect to see a good level of M&A activity, and strategic interest in Nordic life science companies.”

Anything you would like to add when it comes to predicting the Nordic life science financial landscape in 2024?

“The rough ride is not likely to end anytime soon, so it is necessary to adjust for the difficult market and try to meet the challenges in a strong position.”