European venture capital firms have formed the European Life Sciences Coalition (ELSC) to combat the continent’s declining financial appeal. Sofinnova Partners and Novo Holdings are among the nine members managing over €24bn in life sciences assets. The goal is to boost private and public investment in Europe’s life sciences and biotech sector.

Despite a rise in biotech venture funding in the second half of 2025, European biotechs struggle to attract the same capital as US and Chinese counterparts. European life sciences VC funds only hold 7% of the global market. The ELSC aims to address this disparity by advocating for a shift in European capital deployment.

The ELSC’s creation highlights Europe’s challenge in attracting biotech companies, with most EU biotechs listing on non-European stock exchanges. The coalition seeks a fundamental change in European capital deployment, not handouts, to enhance the region’s competitiveness in the industry.

Europe’s life science sector is vital to the economy, with pharma exports reaching €313.4bn in 2024. The European Commission’s proposed Biotech Act aims to improve Europe’s biotech investment climate and accelerate lab-to-market processes. EuropaBio supports the act but stresses the need for bold investment strategies.

With influential VC firms onboard, the ELSC aims to provide practical insights on capital allocation and company growth to policymakers. The coalition seeks to enhance Europe’s biotech industry competitiveness and create a more supportive environment for startups and investors.

Read more at Yahoo Finance: European VC firms band together to tackle continent’s lacklustre capital