Valuations of European biotech: A reality check with Gimv
Prevailing market conditions have prompted mindset changes. European biotech valuations may still need to come down
Over the past two years, the European biotech industry has undergone a transformative — and painful — process to adapt to the prolonged downturn in the capital markets. Bram Vanparys, managing partner of Gimv, thinks that the story is now changing. The hard part of shifting attitudes is mostly over: reality has set in. Now, investors and companies are resetting valuations and matching that process with strategies to produce growth and align expectations on ROI.
Gimv N.V. (Euronext:GIMB), headquartered in Belgium, is one of the earliest European funds with a dedicated team for healthcare and therapeutics. With a total AUM of about €2 billion, Gimv is specialized in five sectors including consumer, healthcare, life sciences, smart industries and sustainable cities. Vanparys oversees Gimv’s life sciences VC arm, which focuses on series A and B investments, predominantly in early-stage biotech companies. Currently, it holds 13 portfolio companies in life sciences, with an initial commitment per company at €8-€15 million. ...