The Future of Biotech in Europe: How Europe Can Compete in the Global Biotech Race

The picturesque city of Basel, Switzerland, was the location for the second installment of Capital for Cures, a series of high-impact events co-hosted by SS&C Intralinks and Slate Mountains Capital. Designed to tackle some of the most pressing issues in the life sciences investment ecosystem, this exclusive summit brought together senior executives, venture capitalists, biotech founders and policymakers from across Europe. There, they discussed a persistent challenge: the funding gap threatening the future of European biotech innovation. 

Building on the momentum from the first summit in Amsterdam, the Basel event took the conversation further, exploring structural barriers, bold ideas and collaborative strategies that can help unlock the full potential of Europe’s life sciences sector. From capital inefficiencies to regulatory fragmentation, what follows are some of the key takeaways that emerged from the summit’s candid conversations. 

Europe's untapped potential 

Europe is home to some of the world’s leading research institutions, Nobel-caliber talent and a vibrant life sciences community. However, when it comes to translating early-stage science into market-ready biotech ventures, the region lags behind. Speakers at Capital for Cures Basel highlighted a striking imbalance: While the U.S. accounts for 80 percent of global biotech IPOs, only 1.5 percent of early-stage European venture funding comes from pension funds, compared to 27 percent in the U.S.

The result is a persistent biotech funding bottleneck that drives promising startups to seek capital from overseas. Panelists emphasized that this funding gap isn’t just a financial issue — it’s a missed opportunity to deliver life-saving treatments to patients.

As European innovators continue to face limited early-stage support, their struggle signals an urgent call for long-term systemic reform and cross-border collaboration to shift the trajectory of biotech in the region. 

Rethinking capital, regulation and risk 

One of the summit’s most resonant themes was the importance of adopting a long-term vision. Drawing a parallel to Switzerland’s wine industry, panelists emphasized that building a thriving biotech sector demands patience and persistence. Just as vineyards take time to mature, so too must the capital strategies behind biotech ventures and innovation. 

Speakers called for several bold shifts to help cultivate this vision: 

• Creating sustainable capital pipelines by unlocking pension and institutional capital to support high-risk, high-reward biotech investments
• Aligning monetary policy, such as the European Central Bank (ECB) support, with innovation-driving objectives
• Reforming conservative investment scoring models to reward forward-thinking venture activity 

Another major focus was regulatory reform. Europe’s fragmented regulatory landscape continues to pose significant hurdles for startups trying to scale across borders. A streamlined, pan-European framework could drastically reduce the time and cost of bringing innovations to market, ultimately accelerating patient access to groundbreaking therapies. 

The rise of decentralized funding models 

Some of the most forward-looking discussions at the summit came from the exploration of alternative funding strategies, particularly decentralized finance (DeFi) and crowdfunding. As traditional capital pipelines grow increasingly more risk-averse, participants showcased decentralized funding models like decentralized autonomous organizations (DAOs) and tokenized IP assets (IP NFTs) as revolutionary tools. 

Imagine a DAO dedicated to neurodegenerative research, where contributors worldwide pool resources and collectively vote on which projects to fund. Or consider a tokenized biotech patent that enables liquidity, transparency and shared ownership across a global investor base. 

These approaches open the door for broader public participation, creating a more agile and democratized funding ecosystem that could be a game-changer for early-stage biotech. 

Connecting capital with market access 

A consistent theme throughout the event was that capital alone is not enough. To accelerate biotech innovation in Europe, funding must be matched with faster, more cohesive regulatory processes. Fragmented systems not only deter investment, but they also delay progress for patients who can’t afford to wait. 

A unified European market with clear, streamlined approval pathways could substantially reduce the time from lab discovery to patient treatment, positioning Europe as a more attractive destination for startups and investors. 

Navigating the new venture capital landscape 

The tone of today’s venture capital (VC) environment is shifting. As deal cycles lengthen and investor scrutiny intensifies, biotech founders must be sharper than ever. From refining their pitch decks to building global relationships, startups need to operate at the highest level as only the most compelling, investor-aligned biotech stories will secure capital in today’s competitive market.

The path forward: collaboration and policy reform 

As the summit drew to a close, a strong spirit of collaboration was palpable. The event underscored that Europe has the talent and scientific excellence to lead in biotech, but systemic barriers continue to hinder progress.

There may be no silver bullet for the challenges ahead. Still, Capital for Cures Basel demonstrated that meaningful progress is possible when investors, entrepreneurs and policymakers unite with a shared commitment to building the relationships, frameworks and ideas necessary to drive sustainable biotech innovation in Europe. 

To learn how SS&C Intralinks can facilitate your next breakthrough innovation, drive productivity and help close your deal faster, visit Intralinks for Life Sciences.