**Global Life Sciences Funding in 2025: A Mixed Outlook**
International funding for life sciences commercial real estate in 2025 presented a mixed picture, according to Cushman & Wakefield’s latest report, *Life Sciences Funding in View: 2026 Outlook*. The year saw modest growth in venture capital, a sharp slowdown in initial public offerings (IPOs), and a record-setting performance in mergers and acquisitions (M&As).
**Key Highlights from the Report:**
– **Venture Capital (VC):**
Global VC deal activity reached $49 billion, marking a 1.3% increase compared to the previous year. This total was also 5% above the 10-year annual average. However, regional disparities were evident. The United States experienced a decline in VC funding, while China saw growth. Cushman & Wakefield attributed this uneven performance to policy-related uncertainties that dampened investor confidence and constrained capital flows.
– **Initial Public Offerings (IPOs):**
Global IPO proceeds dropped sharply to $6.8 billion—a 29% decrease year-over-year. The Asia-Pacific (APAC) region bucked the trend with a 51% rise in IPO volume, but Europe saw a staggering 96% decline. Factors contributing to the downturn included market volatility, looming pharmaceutical tariffs, and regulatory uncertainty, all of which may have led companies to delay public offerings or turn to alternative funding sources.
– **Mergers & Acquisitions (M&A):**
M&A activity surged to $114.3 billion in 2025, an impressive 146% increase from the previous year. The market was dominated by megadeals, including four transactions valued above $10 billion and 20 deals exceeding $1 billion.
**Outlook for 2026**
Looking ahead, Cushman & Wakefield expressed cautious optimism for 2026. With improved conditions anticipated in the latter half of 2025, the firm expects a rebound in IPO activity, continued growth in VC funding, and sustained momentum in M&A.
However, despite these positive signals, the report also highlighted ongoing challenges: “Major markets continue to face elevated vacancy and subdued leasing demand,” the authors noted. Nonetheless, the report concluded that strong market fundamentals are likely to support long-term performance in life sciences commercial real estate.
