In his opening speech, Dr Martin Heidecker, Chief Investment Officer of the AMR Action Fund, explained what it takes to establish successful biotech clusters as nuclei for research and development in Germany. The basis for this is the interaction of scientific expertise at universities and local research institutions with industry networks, private and public investors and political decision-makers. Heidecker used the examples of Martinsried, Basel and Leipzig to explain how clusters develop successfully.
How company founders convince investors
Dr Angelika Vlachou, Partner of the Life Sciences & Chemistry Investment Team at High-Tech Gründerfonds (HTGF), outlined the quality features that help start-ups score points with potential investors to Plattform Life Sciences. Because HTGF is often the first institutional investor to invest in start-ups, the due diligence of potential portfolio companies focusses on the quality of the business idea, existing data, market potential and competition. Ultimately, Vlachou believes: "Management is the key. Company founders and the people who drive the company forward give us their vision of where the company should be in five or ten years' time. They gain our trust when they convincingly explain to us that they can actually realise the goals they have set." The HTGF's initial financing is intended to guide the companies to their next key value inflection points.
The company founders themselves have to find the right language for potential investors right from the start. "It's not about presenting science or academic excellence per se, but about clearly demonstrating how this will result in a product or application that addresses an unmet medical need and significantly improves the lives of patients," advises VC expert Dr Vlachou. At the same time, she recommends that all start-ups get in touch with potential buyers of their technologies and products at an early stage.
It takes more than unicorns
A total of four pitch panels - one each for investors, capital market experts, local start-ups from the biotech region of Saxony and Germany-wide start-ups in search of new financing opportunities - offered a total of ten start-ups and four investors a platform to present their business models and investment criteria. The first panel discussion focussed on the structural factors that inhibit the formation of more unicorns in Germany and who finances these start-ups with a valuation of more than USD 1 billion.
There are currently 47 unicorns in Germany across all sectors. More than half of them are based in Berlin. All panel experts agreed that unicorn status is a powerful marketing tool, as it puts the respective companies in the spotlight for investors and job-seeking specialists. However, they are not decisive for the success of VC fund returns. "Not every start-up needs unicorn potential. The typical German exit trade sale is between EUR 50 and 100 million," said Eric Weber, founder of SpinLab Leipzig. The seed financier supports start-ups with financing and market launches.
VC investors and exits wanted
A central topic of the discussion was the lack of capital in Germany. Dr Rainer Strohmenger, Managing Partner at VC firm Wellington, criticised the fact that regulatory requirements in Germany make access to venture capital more difficult. Unlike in other European countries, smaller investments in venture capital are largely prohibited in Germany. While speculative investments such as cryptocurrencies or sports betting are freely accessible, access to VC funds is often only permitted for large sums. As a result, capital for biotech companies is flowing abroad, primarily to the USA. "The problem is not a lack of courage on the part of investors - in many cases, they are simply not allowed to invest," stated Dr Strohmenger.
The inadequate exit market is another problem for the European life science sector. As long as there is no functioning exit market in Europe, the panellists came to the sobering conclusion that successful start-ups will continue to migrate to the USA. Europe has an allocation problem, but basically no capital problem. Family offices, foundations and private investors in particular have assets and are willing to invest. At the same time, the different national regulations and lack of political coordination are preventing Europe from acting more as a single market with common investment structures. Andreas Kastenbauer, Partner at MIG Capital, therefore sees "a huge opportunity for co-investors and syndicates in partnerships at European level."
Regulatory and financial silver lining
At least in terms of speeding up regulatory processes, the legal framework for clinical trials has improved. In her presentation, Dr Manja Epping, consultant for healthcare companies at the commercial law firm Heuking, explained the relevant changes to the Medical Research Act (MFG). The High-Tech Agenda Germany adopted by the federal government in July 2025 has set itself the goal of promoting various projects in the field of biotechnology, including the expansion of a translational centre for gene and cell therapy in Berlin and of genome sequencing capacities for personalised diagnostics and therapies.
Europe is catching up
Mathias Klozenbücher, Managing Director at FCF Fox Corporate Finance, explained the extent to which the European healthcare industry is catching up with the USA in terms of financing volumes. As of July, the company's current Venture Capital Healthcare & Life Sciences Venture Capital Monitor recorded a total volume of EUR 21.55 billion for the USA, 13% below the previous year. In contrast, the volume in Europe increased by 18% to almost EUR 6.7 billion.
At the same time, the largest investors in Europe come from the USA. According to Klozenbücher, the current market environment offers the European healthcare industry the opportunity to position itself internationally: "Valuations in the US are sometimes three to five times higher than their European counterparts. At the same time, we have seen more and more US investors turning to Europe since around 2024. European biotechs are capital-efficient and investors are getting more for their money here. US investors sometimes provide amounts of USD 100 million and more, and European VC investors then jump on board these consortia." His conclusion: "In Europe, we need more energetic funds with deep pockets and standardised Europe-wide regulations that make it easier to invest in start-ups. There is a lack of investors who are willing to get involved in life sciences, especially effective investors for Series A to Series C financing."
The art of the right exit
This appeal was the ideal transition to the final expert panel on financing and exit strategies for biotech and pharma. Christopher Guddat from the Munich-based financial consultancy WRS Advisory advises all companies to go through possible exit strategies with investors at least two years before the intended date. Over the next twelve months, the capital market will open a window for exit transactions. In order to be able to even consider exit options, companies must once again check whether they fulfil all legal aspects, warned Stefanie Greifeneder, rights expert for matters relating to the biopharmaceutical industry at the law firm Heuking.
Patent law issues, study results and shareholder agreements must be fully and transparently documented from the time the company is founded. With regard to exit options, Greifeneder advises remaining flexible until the end, especially in light of the fact that the duration of complex M&A processes is now stretching from six to nine months.
Stefan Maassen, Head of Capital Markets & Corporates at Deutsche Börse, recommends that all life science companies consider going public not as the last option to maximise company value, but as a milestone for further development. The successful IPO of a family-run company in Germany this year has also shown how the capital market fulfils its function as a growth engine for financing the operating business. In addition, according to Maassen's urgent appeal, the stock exchange must be given a positive narrative in the public eye as a marketplace of opportunity and wealth creation: "We must become an ownership society in the direction of entrepreneurship."
How a start-up successfully masters the long path from foundation to exit through takeover was explained by Carsten Fietz, board member of the Leipzig-based enzyme manufacturer c-LEcta. Fietz, a business economist, joined c-LEcta in 2004, organised the first VC round in 2006 and was involved in the negotiations for the sale to the Kerry Group, an Irish manufacturer of flavourings and nutrients, for EUR 137 million in 2022. In addition to the Deutsche Börse network, Fietz's ability to credibly present his own equity story to a broad spectrum of potential investors was crucial to his success.
With its premises at the Alte Messe Leipzig, c-LEcta also hosted the evening event that followed the event. There, all participants had plenty of room for networking and further discussions on the topics discussed during the day in an informal setting.
Press release from "GoingPublic Media AG" dated 29 October 2025