Europe Biotech Funding Gap Hits Series A Startups
Investors at the 2026 BIO Europe conference in Cologne say early-stage biotech companies are struggling to raise capital as larger late-stage rounds grow.
Updated on Nov. 11, 2026 in Biotech
Speakers at the 2026 BIO Europe conference in Cologne, held November 9 to 11, argued that European biotech funding is shifting toward large late-stage rounds while early-stage Series A financing is neglected. Biotech rounds over €100m rose 25% in 2026, while rounds under €15m fell 25%.
Why it matters
Preclinical biotech companies are struggling to find money, and Series A has become a financing gap that could affect how many early-stage assets reach clinical development. The shift also feeds Europe's scale-up problem, as academics increasingly look to Europe amid NIH funding cuts in the US.
Rounds over €100m rose 25% in 2026 while rounds under €15m fell 25%, according to figures cited at the conference. Raising a €20m-€30m round for a more advanced company is easier than smaller early-stage investment, though the source does not quantify how many companies have been affected.
The players
BIO Europe
BIO Europe is a major biotechnology partnering and networking conference held annually in Europe.
Forbion
Forbion is a European life sciences venture capital firm that runs an early-stage investment offshoot called Biogeneration Ventures (BGV).
The details
Edwin Moses identified large venture capital companies raising big funds for late-stage clinical development as the major change in the European VC scene. Juri Bach said raising a €20m-€30m round for a more advanced company is easier than smaller early-stage investment, and Karl Nargler argued Europe still suffers from a scale-up issue.
Timeline
November 9-11, 2026: BIO Europe conference held in Cologne
2026: European biotech fundraising shifted toward larger rounds and away from small rounds
Market Landscape
European biotech is seeing its funding mix shift toward late-stage rounds, a pattern that mirrors the larger capital concentration seen in US venture markets. Academics leaving US institutions after NIH funding cuts are increasingly considering Europe, which could strengthen the region's research base even as early-stage financing tightens.
Founders and researchers at early-stage European biotechs may face longer fundraising timelines and smaller available rounds. Academics considering a move to Europe may find opportunities expanding, though salary gaps with the US remain a barrier to attracting talent.
The takeaway
Early-stage biotech funding in Europe is becoming harder to secure as capital flows toward later-stage assets. Companies at the Series A stage should plan for longer fundraising cycles and seek investors willing to back preclinical science.
Further reading
For more on the sector, explore Biotech coverage.
Source note: This article includes information reported by Pharmaceutical Technology.
