International funding for life sciences commercial real estate in 2025 could be described with one word: Mixed. According to Cushman & Wakefield’s “Life Sciences Funding in View: 2026 Outlook,” venture capital increased slightly, initial public offerings slowed, and mergers and acquisitions (M&As) “had a banner year.”
Specifically:
- Global VC deal activity totaled $49 billion, a 1.3% year-over-year increase. Additionally, volume was 5% above the previous 10-year annual average. However, activity at the country level was mixed, with U.S. funding declining and China’s increasing. “Policy-related uncertainty tempered investor confidence and constrained capital flows,” the report said.
- Global IPO offerings totaled $6.8 billion, a 29% decline from the year before. APAC IPO volume increased by 51%, while Europe’s dropped by 96%. The Cushman & Wakefield write-up noted that market volatility, potential pharmaceutical tariffs, and regulatory uncertainty might have delayed public offerings or forced companies to seek alternative capital sources.
- Total M&A activity stood at $114,3 billion, a 146% increase from 2024. According to the report, “the year was defined by megadeals, with four transactions exceeding $10 billion and 20 surpassing $1 billion.”
Looking forward, the report said that, with conditions improving in the second half of 2025, the stage is set for a positive 2026, with a normalizing IPO market, increasing VC funding and ongoing M&A momentum. However, “major markets continue to face elevated vacancy and subdued leasing demand,” the report said, adding that fundamentals should underpin CRE performance over the long term,” the report said.
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