VCs favouring new investments over existing portfolio and have money to deploy
M&A expected to be strong
Top investor requirements – Team, Science and Differentiation
LONDON, Dec. 11, 2024 /PRNewswire/ — Optimum Strategic Communications (‘Optimum’), the international strategic life sciences communications firm, today announces the results of its Optimum European Life Sciences Investor Survey 2025: Great Expectations – Will 2025 Live Up to its Promise? The survey explored the current sentiment of leading VC firms collectively managing c.$300 billion in life science focused assets.
2024 has been another challenging year for fundraising in life sciences and, while the industry has not seen ‘across the board’ resurgence in confidence or capital flows, Optimum’s 2025 survey does present some grounds for optimism.
Key takeaways:
- Investment criteria – The top three criteria investors are looking for when deciding to invest are: Great people, great science and differentiation.
- Key drivers of investment – 86% believe that the availability of capital will be a key driver in financing activity over the next 12 months, given increased pressure to deploy large funds raised and the influence of public market performance on private valuations and funding rounds.
- 57% of investors believe strong clinical data and promising innovation are the key drivers for investment, while 24% cited exits and returns as the most influential factors.
- Fundraising outlook – 60% of investors are confident in the fundraising outlook for the next year and they believe that well-prepared companies with strong fundamentals can secure funding, albeit possibly at lower valuations than previously expected.
- M&A – Investors believe there will continue to be strong M&A activity in 2025. Areas of focus are: cardiometabolic, immunology & inflammation, CNS and oncology.
- Capital deployment – Compared to last year’s [2024] survey results, investors are no longer prioritising their existing portfolios, and the past year has seen a notable tilt towards new investments.
- Appetite for obesity-related drugs has remained strong. Neurological and CNS disorders continue to attract attention, as recent data and new treatment mechanisms are bringing fresh investment opportunities.
- Funding stage – 52% of investors believe that Series B will be the most active funding stage, with some noting an increase in crossovers, given the IPO backlog.
Commenting on the findings, Mary Clark, Chief Executive Officer of Optimum Strategic Communications, said: “While the past year has been challenging, there have been a number of recent large fundraisings which suggest that the industry has turned a corner. The feedback these investors have given offers companies a valuable blueprint on how to attract investment. For the right story, the money is there. But accessing capital continues to be very competitive, and telling a strong and compelling investment story remains vital.”
If you would like to receive the complete report, please email contact@optimumcomms.com or download it from our website here.
About Optimum Strategic Communications
Optimum Strategic Communications is an international strategic life sciences consultancy which specialises in investor relations, corporate and financial communications. Our senior team of healthcare specialists, based in London, Amsterdam, Stockholm, Zurich, San Francisco, San Diego and New York, are experienced and trusted advisors to some of the world’s most exciting public and private companies, both large and small, across pharmaceuticals, biotech, medtech, health tech, healthcare services and industrial biotechnology.
Over the last 25 years, our team has worked with over 400 healthcare companies, advising them on financial communications and investor relations, including major corporate activity such as fundraising, IPOs, M&A, as well as corporate reputation and crisis scenarios.
We have an exceptional network of contacts across the international investment community in Europe and the US; contacts we have built and maintained over the last three decades. The Optimum team includes ex-fund managers and analysts, as well as financial and corporate communications specialists.
For more information, please visit www.optimumcomms.com.
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