Bildnachweis: Life Science Factory & GOe Future, VC Magazin, Pixabay.
How Germany is becoming a global hotspot for life sciences innovation: Dr Sven Wagner, Managing Director of the Life Science Factory and Head of Business Development at Sartorius, shares his perspective on public funding, regulatory bottlenecks and what it takes to build a thriving deeptech ecosystem.
VC Magazin: With the Life Science Factory emerging in Göttingen and Munich, a flagship start-up centre is taking shape. In your view, what specific political and regulatory conditions are needed to ensure such lighthouse projects can unfold their full impact – beyond individual funding schemes?
Wagner: Our Life Science Factory facilities in Göttingen and Munich benefit from partial support by local governments, enabling us to provide favourable conditions to start-up teams transitioning from academic environments. Establishing such innovation hubs promotes collaboration among academia, industry, and government. Furthermore, political and regulatory frameworks should aim to cultivate supportive ecosystems, featuring streamlined regulatory processes, tax incentives for innovation, and modernised intellectual property protection models. For instance, according to the Singapore Economic Development Board, tax incentives and grants have led to a 30% increase in start-up formation in the life sciences sector over the past five years. Learning from such international models can further enhance the impact of these centres.
VC Magazin: GOe Future, a regional initiative of Göttingen, Hanover and Brunswick for life science entrepreneurship has been submitted to the federal ‘Startup Factories’ competition. How do you assess the effectiveness of such funding instruments for specialised ecosystems – and what are your expectations of the federal government in this regard?
Wagner: Federal funding instruments can effectively nurture specialised ecosystems by offering targeted financial support and enhancing visibility. However, their success hinges on aligning funding criteria with the specific needs of the ecosystem and founding projects.
It’s crucial that these instruments remain flexible and responsive to the dynamic nature of
life sciences innovation. This motivated us to establish GOe Future, with a dedicated focus
on life science start-ups. In early July, we received the exciting news that GOe Future was
selected to become a Startup Factory and to obtain up to EUR 10 million in public funding
to boost the life sciences start-up ecosystem. We aim to maintain close dialogue with the government to raise awareness of these specific needs, bearing in mind that continuous
evaluation and adaptation of these funding schemes are essential to address emerging challenges and opportunities.
VC Magazin: Especially in Medtech, Biotech or diagnostics, start-ups often face years of regulatory approval procedures. Where do you see the most critical bottlenecks – and what specific reforms would be necessary to prevent innovative ventures from being held back?
Wagner: Drawing from our years of experience with life science start-ups, we’ve determined that the most critical bottlenecks often stem from lengthy and complex regulatory approval processes. Specific reforms could involve accelerating review timelines, adopting risk-based approaches, and enhancing the transparency of regulatory requirements. Streamlining these processes would enable innovative ventures to bring their products to market more swiftly. Additionally, looking at successful international role models in expedited approval pathways and engaging in exchanges could provide valuable insights for improving our regulatory framework. Collaborative efforts with regulatory bodies to develop pilot programmes in the start-up environment for expedited approvals could be beneficial.
VC Magazin: The federal government often points to the Future Fund as a major capital source. But does it truly meet the financing needs of research-intensive life science start-ups – or are more tailored instruments needed, for instance to support clinical trial phases or IP-heavy business models?
Wagner: While the Future Fund is a significant capital source, it may not fully meet
the financing needs of research-intensive life science start-ups, especially during clinical
trial phases. More tailored instruments, such as grants for clinical trials and specialised
venture capital funds, could better support these unique requirements. Furthermore, establishing partnerships with private investors to co-fund high-risk projects could enhance financial support.
VC Magazin: Many excellent life science projects fail to transition into viable business
models. What kind of funding logic should the government pursue to systematically accelerate translation from academic research into commercial application?
Wagner: Various funding approaches that can directly and indirectly support translation. These include incentives for founders in academia and clinics, milestone-based grants, support during clinical trial phases, and financial backing for collaborative projects between academia and industry. These strategies aim to bridge the gap between research and market readiness. Additionally, the government can play a crucial role in supporting start-up ecosystems to attract private capital by developing strategies with technology-focused hubs and regions, fostering national collaboration, and enhancing awareness and visibility beyond borders.
VC Magazin: In your opinion, what are the three essential elements that a specialised
start-up platform in the life sciences sector must offer to ensure sustainable success?
Wagner: Apart from access to funding, we need the ‘hardware’ and the ‘software’ to develop successful life science start-ups, which means: need-based lab facilities, including
cutting-edge technology and services, and a broad network of mentors, partners, and likeminded innovators for continuous learning opportunities and exchange within the community.
VC Magazin: Thank you very much.
About the interview partner:
Dr Sven Wagner is a trained scientist and has been responsible for business development in the areas of strategy and acquisitions at the life science group Sartorius for the past 15 years. In addition, he is the founder and Managing Director of the Life Science Factory and Life Science Valley, General Partner of the Life Science Valley Venture Fund, and serves on various advisory boards, including those of biotech start-ups and the local patent exploitation agency.
