EY report highlights a growing funding gap in the biotechnology sector

The volume of Series B funding fell to its lowest level in eight years. At the same time, a large proportion of the available VC capital flowed into a small number of already established companies. According to EY, this creates a funding gap between successful start-ups and industrial-scale operations. Despite the challenging market environment, the sector as a whole remained stable. At twelve billion euros, turnover was only slightly below the previous year’s figure. At the same time, the number of employees rose to just under 60,000. The number of biotechnology companies continued to grow. There are positive signs from the field of clinical development. The number of Phase II trials increased significantly within a year, whilst Phase III projects remained stable. The report makes it clear that Germany continues to have a strong scientific foundation. According to EY’s assessment, whether this will result in greater economic value creation in the future depends largely on whether sufficient growth capital is available for the next stages of development.

Source: EY, 8 June 2026