Strategies for creating an ecosystem to support early-stage biotechs

European biotechs continue to face a demanding investment climate characterised by investor caution. As a result, many are evaluating potential headquarters locations, assessing the types of support offered across Europe's biotech hubs, or 'ecosystems', and beyond. But what support do biotech start-ups need from an incubator? 

In 2026, the outlook for biotechs looks set to continue the gradual improvement we saw in Q2 2025, with more biotechs being acquired, valuations ticking up, more financing available, and some record-setting follow-on offerings taking place. But industry commentators are not yet in a position of unconditional optimism, and continued fallout from the tribulations of the biotech market over the last few years is predicted. The biotech IPO window is still not fully open in Europe, and this is having a trickle-down effect on the venture side for smaller biotechs, including at the start-up level.

Early-stage biotechs that can demonstrate strong data, a capable management team, and a product targeting an indication with unmet need are attracting investment. However, the market is still challenging for many. In such an environment, isolated biotechs may find themselves at a disadvantage compared to those operating within a strong ecosystem, where the presence of multiple companies can create opportunities to collaborate, share knowledge, access specialised service providers, and attract and retain talent. Some biotech ecosystems may also offer access not only to early-stage funding but to comprehensive support spanning regulatory assistance, manufacturing infrastructure, and pathways to scale-up funding.

When evaluating what a biotech ecosystem in a particular location can offer, start-ups would be well-advised consider the following areas.

Market access assistance

Look to see whether the region has healthcare systems, hospitals, and institutions that are prepared to participate in developing an innovative product. Access to local healthcare systems for clinical validation is crucial for early-stage biotechs. So too is access to working with regional healthcare providers that may become the initial buyers for an innovative product, particularly as this can help to fast-track development processes.

Biotechs evaluating locations should look to identify a critical mass in the specialism in which they intend to expand, and to consider whether the ecosystem offers access to a clinical validation infrastructure that enables relatively low-cost clinical studies. For example, femtech start-up Innitius was founded in Southern Spain but relocated to Biscay, where it gained access to the local healthcare system and its data. The company is now in the clinical phase across multiple indications and, since October 2025, has initiated the commercialisation process for its first product.

It’s important to keep in mind that academic spin-outs may face specific challenges when accessing markets. In some countries, legal constraints limit academic involvement; for example, under Spanish law, academics cannot own more than 10% of a biotech company. 

For this reason, it’s advisable to seek out ecosystems with government or corporate support for academics transitioning to business. For example, Biscay-based Faes Farma collaborates with local academics on technology-transfer arrangements that enable research to be commercialised, and the bioGUNE not-for-profit research organisation is funded by the Basque Government and collaborates with local companies.

Pathways to scale-up funding

Regional public-private sector partnerships can provide a robust mechanism for delivering early-stage support and scaling-up support to biotechs. But when a company grows to approximately 20 employees, it often faces constraints in both expertise and funding, thereby requiring more significant investment to scale up manufacturing and market authorisation. At this stage, attracting interest from global pharma is the desirable gateway to the market.

It's therefore important, when considering relocation to be part of a biotech hub, to look at what the ecosystem offers companies actively seeking strategic partnerships to accelerate their growth trajectory. Consider whether help is available to identify partners who can provide critical support through investor funding or licensing agreements. For example, the Basque Health Cluster (of which the Biscay biotech ecosystem forms part) facilitates meetings at its Health Innovation Centre between local start-ups and early-stage companies and big pharma, and these can lead to licensing and collaboration deals.

For start-ups with products nearing market readiness, securing substantial funding is also crucial. When considering being part of a biotech cluster, look at whether any early-stage investment is on offer, and at the potential of the region to meet the larger capital requirements needed for process scaling. For example, the Biscay Government vehicle Seed Capital Bizkaia provided early support for the company Oncomatryx, which today is in Phase 1b/2a clinical development, advancing highly innovative technology targeting the tumour microenvironment. This approach was initially considered high-risk by investors.

Biotech start-ups approaching the market authorisation and launch stages frequently face significant product demand while simultaneously needing to fund major operational expansions. It is therefore important that the ecosystem where an early-stage biotech is located has resources and expertise available during this critical growth phase. For example, the Spanish venture capital firm Columbus VP has been actively investing in biotech companies in Biscay, leveraging innovation-driven synergies between its portfolio companies. Biscay-based synthetic DNA-manufacturing processes start-up Syngoi, in which Columbus VP is the main investor, was the subject of significant international financing in January 2026, when San Diego-based Artis BioSolutions acquired it, in a deal which represents a substantial investment in the Biscay biotech ecosystem.

Manufacturing assistance

When considering a hub or ecosystem, it is also important to look ahead past clinical trials and Market Authorisation to ensure that, in addition to scientists, talent and knowledge base, the hub has local manufacturing facilities that can meet your ultimate commercialisation needs. 

Many biotech start-ups do not wish to develop their own in-house manufacturing capacity, so a CDMO can be crucial in accelerating the process of getting products to the market authorisation and reimbursement stages. A good CDMO within a local ecosystem can also be an excellent asset for expanding geographically in Europe.

For example, the Biscay region has a long tradition in metal manufacturing, which has given it automotive industry skills, infrastructure, and supplier networks, potentially transferable to medical devices and drugs. Over the last seven to eight years, Biscay has been developing a significant critical mass in ATMP manufacturing. The wider Basque region now contains 90% of all CDMO facilities in Spain, with a particular concentration and specialisation in ATMP manufacturing, for example, the companies Viralgen, Vive Biotech, Cocoon, Syngoi, and Histocell.

Generally, be aware that over the next few years, the drugs and devices manufacturing landscape in Europe will undergo profound and rapid change. As the current geopolitical trade situation evolves towards protectionist policies, there is a desire in Europe to onshore biopharma production.

As a result, Europe's biotech landscape is being reshaped by a complex web of initiatives, including the European Commission's life sciences strategy, a proposed Critical Medicines Act, a proposed Biotech Act, and the ongoing sweeping Pharma Review. For this reason, it is strategically vital for the EU to have CDMOs located in Europe, and we are particularly seeing growth in ATMP manufacturing and development there.

In the volatile environment, finding the right mature biotech ecosystem, supported by public-private partnerships and sector-specific expertise, can materially de-risk development timelines and capital efficiency. If market headwinds persist in 2026 as is expected, a strategic ecosystem can represent a valuable component of competitive positioning.