**Global Life Sciences Funding in 2025: A Mixed Bag**
International funding for life sciences commercial real estate in 2025 can be described in one word: mixed. According to Cushman & Wakefield’s “Life Sciences Funding in View: 2026 Outlook,” venture capital saw a modest increase, while initial public offerings (IPOs) declined, and mergers and acquisitions (M&A) reached historic highs.
**Key Highlights:**
– **Venture Capital (VC):** Global VC deal activity reached $49 billion in 2025, marking a 1.3% year-over-year increase. This volume was also 5% higher than the 10-year annual average. However, funding trends varied by region. U.S. funding declined, while China experienced growth. The report cited policy-related uncertainty as a factor that restrained investor confidence and limited capital flows.
– **Initial Public Offerings (IPOs):** Global IPO volume fell sharply to $6.8 billion, representing a 29% drop from the previous year. While IPO activity in the Asia-Pacific region increased by 51%, Europe experienced a staggering 96% decline. Market volatility, concerns over potential pharmaceutical tariffs, and regulatory uncertainties were cited as contributing factors that delayed IPOs or pushed companies to explore alternative financing options.
– **Mergers & Acquisitions:** Total M&A value surged to $114.3 billion, showing an impressive 146% increase compared to 2024. The year was particularly notable for “megadeals”: four transactions exceeded $10 billion, and 20 deals surpassed $1 billion.
**Outlook for 2026:**
The report forecasts a more positive landscape ahead. With improved conditions expected in the latter half of 2025, 2026 may see a normalization in the IPO market, increased venture capital activity, and continued M&A momentum. Nonetheless, major commercial real estate markets still face challenges such as high vacancy rates and low leasing demand. Cushman & Wakefield emphasizes that strong market fundamentals will be essential to support the long-term performance of life sciences real estate.
