Bavarian Biotech Sector Expands with Record Funding and Startup Growth in 2025

The Bavarian biotech sector continued its growth trajectory in 2025. Despite a challenging international market environment, the number of companies in the biopharmaceutical sector increased by 1.5% to a total of 548. At the same time, financing and subsidies reached a new record high of more than €930 million. This is according to the latest annual report, “Biotech in Bavaria 2025/26 – Where champions grow,” published by BioM.

The startup scene developed particularly dynamically: with 26 newly founded startups, the sector recorded growth of 62.5% compared to the previous year. In addition, three more companies established operations in Bavaria. This continues the positive trend of recent years. After ten new companies in 2023 and 16 in 2024, 2025 marks a new record high.

Employment also increased. The number of employees in the Bavarian biopharmaceutical sector rose by 3.5% to around 59,000. Larger biotech companies, in particular, continued to expand their teams.

Financing volume at record levels for Bavarian biotech companies

Bavarian biotech companies raised more than €930 million in financing last year, surpassing the already high figure of the previous year. While financing declined nationwide, Bavaria was able to further strengthen its position. Since 2023, the financing volume has almost doubled. The largest financing round of the year was achieved by Tubulis with a Series C funding of €344 million. In April 2026, the Munich-based company was acquired by the US pharmaceutical company Gilead for up to $5 billion.

Other major financing rounds included ITM with debt financing of up to €231 million, Nuclidium with a Series B round of €84 million, and Formycon with an oversubscribed corporate bond issue of €70 million. Immunic secured €57 million and AMSilk a total of €52 million. In the early-stage sector, five seed financing rounds with a total volume of more than €21 million were announced. At the same time, the comparatively small number of larger Series A rounds in the Bavarian biotech sector illustrates that financing growth companies remains a challenge.

Robust clinical pipeline

Clinical development at Bavarian biotech companies remains at a high level. A total of 72 projects are currently in clinical development. The number of Phase II projects increased particularly sharply, while the number of Phase I programs also rose. Oncology remains the most important indication, while infectious diseases are gaining in significance. Bavarian Nordic achieved a major milestone with FDA approval and European marketing authorization for its Chikungunya vaccine.

“These figures impressively demonstrate the resilience and innovative strength of the Bavarian biotech ecosystem. The high number of new company formations and the continuous development of clinical projects are particularly encouraging. Bavaria offers excellent conditions for translating cutting-edge scientific achievements into successful companies and new therapies,” says Prof. Ralf Huss, CEO of BioM .

Billions in investments strengthen the location

The Bavarian biotech industry is receiving additional support from extensive investments in research and infrastructure. Roche is investing more than €640 million in Penzberg to expand its diagnostics and sequencing capacities, creating around 200 new jobs. Further impetus is coming from the new Fraunhofer site for translational medicine and pharmacology in Penzberg, which is receiving nearly €90 million in funding.

In addition, a new research building for the Helmholtz Institute for RNA-based Infection Research in Würzburg has been initiated with funding of around €60 million. The Max Planck Society is also investing in the expansion of the Martinsried science site. €361 million has been approved for the first construction phase of the new life sciences campus. The Free State of Bavaria is providing up to €500 million for the overall project.

Positive expectations for the coming years

Despite economic and geopolitical uncertainties, the Bavarian biotech industry is optimistic about the future. According to a survey conducted by BioM, 63% of companies rate their current business situation as good or very good. 82% expect their business performance to improve further over the next three to five years.

The strong increase in new company formations, the Bavarian biotech sector’s high level of financing, and continuous investments in research and infrastructure point to a sustained positive development of the Bavarian biotech ecosystem. However, a crucial factor is the further strengthening of early-stage and Series A financing to transform the numerous startups into the next generation of growth companies. The planned European Biotech Act could provide additional impetus in the future.

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(Featured image by Anastasiya Dalenka via Unsplash)

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First published in Venture Capital Magazin. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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