The UK continues to lead the European life science markets, accounting for 32% of total European venture capital investment volumes over the past five years, according to new research from Savills.
While British cities attracted over €10 bn of the €32 bn total, Germany was second with €4 bn, while Switzerland raised €3 bn.
The research firm said that the UK maintained its leadership due to its high-quality universities and teaching hospitals, combined with the growing demand for life science companies to co-locate with these institutions.
For Tom Mellows, head of UK science at Savills, the UK has taken ‘a lead’ from the US when it comes to attracting investment.
He said: ‘As the sector continues to mature, we are likely to see increasing growth outside of the Golden Triangle, as well as growing interest in mainland Europe, particularly in France, Germany and the Netherlands.’
The high level of collaboration between academia and industry has contributed to the establishment of strong life science ecosystems in Switzerland, Finland, the Netherlands, Belgium and Germany.
Last year, for example, two key deals in The Netherlands were struck, with North Sea Therapeutics raising US$ 80 mln (€72 mln) and NewAmsterdam Pharma €162 mln.
Savills has forecast that Spain and Italy will increasingly focus on greater collaboration between academia and the corporate sector, leading to higher levels of venture capital investment.
One such example is Lendlease’s Milan Innovation District (MIND) science hub development project in Italy, that has received funding from the Canada Pension Plan Investment Board (CPPIB).
Mike Barnes, associate director in Savills commercial European research team, added: ‘Respective governments in emerging life science locations with an aspiration to be world leaders have the opportunity to create policy to encourage greater collaboration between academia and industry.
‘This is generating new development opportunities, which will result in the growth of life science ecosystems and attract further VC investment. As a result, we predict this will cause a shift in the below chart as countries move along and up the curve to compete on the global stage.’
