Enterprise capital financing of European life sciences corporations may exceed the EUR 10 billion mark in 2021 for the primary time

  • FCF Life Sciences Enterprise Capital Monitor: Enterprise capital deal quantity in Europe will increase to EUR 8.three billion as of finish of July
  • Dr. Mathias Schott: “Rising curiosity of US buyers accelerates progress in funding quantity“

Munich, August 30, 2021

As of the tip of July 2021, the enterprise capital financing quantity of life science corporations in Europe has already exceeded the full quantity of the earlier yr. Complete enterprise capital financing for all times sciences thus far quantities to EUR 8.three billion. In 2020, the amount for the complete yr amounted to EUR 8.1 billion. This is among the outcomes of the “FCF Life Sciences Enterprise Capital Monitor – Europe” by Munich-based financing specialist FCF Fox Company Finance GmbH.
“The growing curiosity of US buyers in European life sciences corporations is accelerating the expansion in transaction quantity,” says Dr. Mathias Schott, Head of FCF Life Sciences, including, “With a presumably increased quantity within the second half of 2021, it’s doable that the EUR 10 billion mark could be exceeded this yr.”

It’s noticeable that the transaction quantity was achieved regardless of a decrease variety of enterprise capital offers. Whereas there was a complete of 855 transactions in 2020, there have been “solely” 587 transactions in Europe as of the tip of July 2021. “The upper variety of massive offers is the principle driver for the rise in complete quantity,” emphasizes Dr. Schott. Whereas the variety of transactions with a quantity better than EUR 50 million amounted to 30 in 2020, it’s already at 41 in 2021. Offers above EUR 50 million had been accountable for greater than half of the full quantity as of the tip of July (58 p.c). In 2020, in contrast, this determine was solely 43 p.c. The typical transaction quantity as of the tip of July was EUR 14.1 million, in contrast with EUR 9.5 million in 2020.
One doable motive might be the excessive quantity of funds lately raised by European and US healthcare funds. In 2020, European funds raised in complete EUR 2.1 billion for brand new investments, whereas by the tip of July this yr, EUR 2.9 billion had already been raised. US funds are at the moment barely beneath the earlier yr’s degree, with EUR 11.2 billion raised thus far, in contrast with a complete of EUR 13.6 billion in 2020.

The highest 5 offers are above EUR 190 million every. The biggest deal quantity thus far was EUR 497 million at CMR Surgical Ltd. from the UK. Among the many prime 5 buyers, the US business large BlackRock is in first place, adopted by Constancy Administration & Analysis (USA) and Novo Holdings (Denmark). Greater than half of the full funding quantity (52 p.c) was positioned within the biotechnology sector. Oncology (prevention, analysis, remedy and aftercare of tumors and most cancers) continues to be the world with the very best funding exercise. It is usually putting that the amount within the MedTech sector in July 2021 has already exceeded the full quantity in 2020. Within the HealthTech space, that is more likely to be the case in August.

The FCF evaluation additionally exhibits that extra capital has come from overseas thus far: In 2020, 62 p.c of invested capital stemmed from international buyers. In 2021, the determine is 65 p.c as of the tip of July. It’s notable that the capital invested by US buyers, at EUR 2.Eight billion, is already 15 p.c bigger than in full yr 2020 (EUR 2.5 billion). The curiosity of household places of work is growing: The FCF evaluation exhibits that the amount invested by household places of work in 2021, at EUR 190 million, is thus far considerably bigger than in 2020 (EUR 98 million).

Nevertheless, the quantity and financing quantity of smaller offers has thus far been considerably smaller than in 2020. Whereas the variety of transactions with a quantity of lower than EUR 20 million in 2020 was 764 and the full quantity was EUR 2.7 billion, as of the tip of July it was solely 489 and the amount was EUR 1.7 billion. ” We must always control how the variety of smaller transactions for early-stage seed and sequence A financings will develop till the tip of the yr, so as to have the ability to react early to a doable financing bottleneck,” alerts Dr. Schott.

The evaluation could be discovered right here.

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