EY German Biotechnology Report 2026: Strong Research Meets a Funding Gap

Germany has an internationally recognised research landscape and ranks among Europe’s leading countries in terms of scientific institutions, research output and biotechnology patents. However, translating this potential into scalable companies and sustainable industrial value creation remains a challenge. The EY German Biotechnology Report 2026 therefore presents a mixed picture of the sector.

The financing figures for 2025 illustrate this challenge particularly clearly. Venture capital investment in German biotechnology companies fell by 33% compared with the previous year, reaching €601 million. At the same time, funding was heavily concentrated among a small number of companies: the three largest financing rounds accounted for 71% of the total venture capital invested in the sector.

The greatest funding gap appears during the transition into the growth stage. While seed financing remained above the historical average and Series A activity was comparatively stable, the total volume of Series B financing fell to just €7 million–the lowest level recorded in eight years. There were also no new German biotech IPOs in 2025.

A longer-term perspective, however, shows that investments in German biotechnology companies can generate successful outcomes. EY analysed the three largest venture-capital-financed companies from each year between 2001 and 2025. Of the 51 companies included in the analysis, 19 were acquired and seven went public. Although ten companies became insolvent, they accounted for only 4% of the approximately €4.9 billion invested in the companies examined.

Clinical development is also progressing. The number of Phase II trials conducted by German biotechnology companies increased from 77 in 2012 to 118 in 2025. The industry pipeline is therefore increasingly advancing towards later stages of clinical development.

The report makes one point particularly clear: Germany does not lack scientific excellence or innovative ideas. One of the central challenges is mobilising sufficient capital to support the further development and scaling of young biotechnology companies. To ensure that research does not remain in the laboratory, stronger connections are needed between science, entrepreneurship, financing and industrial implementation.

The complete EY German Biotechnology Report 2026 provides further insights into the financing, development and international position of Germany’s biotechnology sector.