To remain globally competitive against the US and China, European biotech should focus on its core strength: high-quality, innovative early-stage science. The speaker suggests that while Europe excels at invention, scaling companies still requires tapping into the US market, capital, and talent, positioning Europe as a premier origination hub.
The firm strategically uses its Basel location to tap into a concentrated pool of talent with deep pharma expertise. However, its deal sourcing is not limited to the local ecosystem. The firm actively in-licenses IP and finds opportunities from around the world, including Japan and other parts of Europe, creating a 'best of both worlds' model.
While overall venture capital investment in European biotech is rising, a critical gap remains at the earliest stage of company formation. According to the speaker, founders still find it very difficult to secure the initial "first capital" needed to get started, even as later-stage funding has grown tremendously in the region.
Instead of passively investing, Forty51 Ventures actively builds its portfolio companies. They serve as the first capital in, often in-licensing IP or building it from scratch, then recruiting the team and writing the development plans. This operational model is designed to manufacture investable opportunities from the ground up.