German Biotech Financing Surges 78% in 2024, Doubling Pre-Pandemic Levels

The German biotech industry almost doubled its external financing last year. This is the result of preliminary figures from the BIO Deutschland association together with EY.

In 2024, the value rose by 78% to a total of 1.92 billion euros compared to the previous year. Only in the pandemic years were these values ​​significantly higher. Compared to the level of financing before the pandemic in 2019, last year’s figures represent a real doubling.

The financing of German biotech companies increased by 78% in 2024 compared to the previous year

The sum of venture capital (VC, 898 million euros), capital increases via the stock exchange including convertible bonds (999 million euros) and an IPO (20 million euros) amounted to 1.92 billion euros(2023: 1.080 billion euros). This is the result of the annual survey by the German biotech industry association BIO Deutschland e. V. in cooperation with EY.

There was a strong increase in both private (+68%) and public (listed) companies (+82%). Compared to 2019 (896 million euros), the amount has more than doubled. The number of VC financing rounds, the amount of which is known, was also significantly higher in 2024 at 32 than in the two previous years (2022: 24; 2023: 21). The strong increase in listed German biotech companies is largely due to a large 400 million euro convertible bond from the Düsseldorf-based company Qiagen.

Without this, the financial volume in the German biotech sector would be very similar to the previous year. What is notable, however, is the significant increase in financing through venture capital. However, the increased number of financing rounds plays a less important role here, but rather the fact that individual financing rounds have been exceptionally high, sometimes several times due to the expansion of the investor base in the same company.

The financing rounds in the Munich companies Tubulis and ITM stand out in particular. But Munich-based SciRhom, with a Series A financing of over 60 million euros, and Hamburg-based Infinite Roots (formerly Mushlabs) of a similar size at the beginning of the year also contribute to the high value with very different technologies: SciRhom is an active ingredient developer, Infinite is active in the novel food sector and cultivates mushroom mycelium as a meat substitute.

The traditional BIOCOM data according to OECD standards point in a similar direction to the survey presented here, but will be published at a later date.

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(Featured image by Tim Simon via Unsplash)

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