Optimum Strategic Communications, an international strategic healthcare communications firm, announced the results of its 2024 survey of European life sciences venture capital (VC) investors.
The survey, conducted in November and December 2023, and comprising responses from influential European investors, representing funds with c.$300bn in assets under management, found that most believe market conditions for life science companies will improve through 2024.
After two years of rising interest rates, which have had “a fundamental impact” on valuations and market activity, investors say the outlook appears to be more positive – opening the door to more deals, including financings, collaborations and M&A. However, investors believe the appetite for IPOs is unlikely to improve before 2025.
Many investors say that they have to focus much of their time, energy and cash on existing portfolio companies. Yet the survey also found many VCs still have plenty of ‘dry powder’ ready to be deployed if the right opportunity presents itself. When looking out for fresh opportunities, investors have become more discerning – demanding great data, proven management teams and clarity of vision.
Areas of particular investor interest include obesity drugs, neurology, immunology and select oncology, including ADCs and radiopharma.