**Global Life Sciences Funding in 2025: A Mixed Bag**
International funding for life sciences commercial real estate in 2025 can best be described as a mixed bag. According to Cushman & Wakefield’s report, *Life Sciences Funding in View: 2026 Outlook*, the year featured slight growth in venture capital, slowed initial public offerings (IPOs), and a strong surge in mergers and acquisitions (M&A).
Here are the key findings:
– **Venture Capital (VC):** Global VC deal activity totaled $49 billion in 2025, representing a modest 1.3% year-over-year increase. This total was also 5% higher than the previous 10-year annual average. However, results varied by region—U.S. funding saw a decline, while China experienced growth. The report noted that investor confidence was tempered by policy-related uncertainties, which constrained capital flows.
– **Initial Public Offerings (IPOs):** Global IPO activity reached $6.8 billion, marking a 29% decline from the previous year. Regionally, IPO volume rose by 51% in Asia-Pacific, but plummeted by 96% in Europe. Cushman & Wakefield pointed to market volatility, the potential for pharmaceutical tariffs, and regulatory uncertainty as likely reasons for the slow IPO activity, with many companies opting for alternative sources of capital.
– **Mergers and Acquisitions (M&A):** Total M&A activity soared to $114.3 billion, a 146% increase over 2024. The year was characterized by several “megadeals,” including four transactions exceeding $10 billion and 20 deals surpassing $1 billion.
Looking ahead, the report forecasts a more optimistic landscape in 2026. With improved conditions in the latter half of 2025, expectations include a stabilizing IPO market, increasing venture capital investment, and continued momentum in M&A activity. That said, the report cautions that major markets are still grappling with elevated vacancy rates and subdued leasing demand. Strong underlying market fundamentals, however, are expected to support commercial real estate (CRE) performance over the long term.
