6 biotech start-ups developing life-changing innovations

With the right support to scale and bring their innovations to market, biotech start-ups can help transform healthcare across Europe. Many are developing technologies to better manage chronic diseases and address the unmet health needs of an ageing population, driving a much-needed shift toward more personalised, sustainable medicine.

Crucially, biotech seed funding plays a pivotal role in enabling early-stage success, allowing start-ups to navigate the high costs and risks associated with research and development. By showcasing some successful EIT Health-supported biotech start-ups across Europe, this article highlights how biotech is reshaping healthcare and laying the foundation for a healthier future.

The healthcare biotech landscape in Europe

Europe has emerged as a global hub for healthcare biotechnology, driven by a combination of robust academic research institutions, government support, and thriving start-up ecosystems. [1] The European biotech industry is renowned for its focus on solving complex healthcare challenges, ranging from rare diseases to oncology and regenerative medicine. With countries like Germany, France, and the UK leading the charge, the sector boasts more than 3,700 active biotech companies, many of which are focused on healthcare innovation. [2]

However, the landscape is not without challenges. Regulatory hurdles, talent shortages, and the high costs associated with research and development (R&D) continue to pose barriers. Despite these obstacles, European biotech companies are setting benchmarks globally, particularly in the healthcare sector.

The European Union (EU) provides significant support for biotech start-ups through framework programmes like Horizon Europe, through which EIT Health is co-funded. EIT Health helps bridge the gap between research and commercialisation, playing a pivotal role in supporting biotech innovation across Europe. Through its extensive pan-European network of regional offices, EIT Health facilitates collaboration among start-ups, academia, and industry stakeholders, helping companies navigate regulatory challenges and access key markets. EIT Health’s programmes have been instrumental in supporting start-ups that later progressed to the European Innovation Council (EIC) Accelerator, highlighting its crucial role in bridging early-stage development and growth.

AI in biotech: Driving breakthroughs in European healthcare

Artificial Intelligence (AI) is revolutionising biotechnology, particularly in healthcare, where it enables breakthroughs in drug discovery, diagnostics, and personalised medicine. Studies have shown that AI can significantly reduce drug discovery timelines and costs by predicting molecule efficacy with record accuracy. [3] In diagnostics, machine learning models have demonstrated higher accuracy in detecting diseases like breast cancer compared to traditional methods. [4] AI’s ability to analyse complex biological data also supports advancements in personalised medicine, tailoring treatments to individual genetic profiles. Across Europe, biotech start-ups are leveraging AI to accelerate innovation and improve patient outcomes.

Applications of AI in European biotech start-ups

1.       Drug discovery and development: AI-driven platforms analyse massive datasets to predict the efficacy of potential drug candidates, reducing both time and cost.

2.       Diagnostics and early detection: AI is used in medical imaging and genomics, enabling earlier and more accurate diagnoses of conditions like cancer.

3.       Personalised medicine: AI is used to match existing drugs with rare diseases, offering hope to patients who previously had no treatment options.

The benefits of AI in biotech

·       Efficiency: AI accelerates R&D timelines by automating repetitive tasks and analysing complex datasets.

·       Precision: Machine learning models provide unparalleled accuracy in identifying patterns and insights that human researchers might overlook.

·       Cost reduction: By predicting drug failures early, AI helps companies save millions in R&D costs.

European biotech start-ups are well-positioned to lead the global AI-biotech revolution, thanks to its focus on cutting-edge research and interdisciplinary collaboration.

Spotlight on 6 biotech start-ups transforming healthcare in Europe

Cytocast (Hungary):

Cytocast is pioneering the future of drug discovery with its innovative Cytocast Digital Twin Patient™ platform. This high-performance digital twin technology leverages AI and advanced computational simulations to model protein interactions within virtual cells. By predicting physiological responses, protein complex formations across various tissue types, and potential side effects, the platform enhances the accuracy of drug development. This approach enables in-silico drug testing, reducing development costs and timelines while increasing success rates. Cytocast has already secured €1.9 million in pre-seed funding and is actively seeking seed investment to expand its market reach and further enhance its platform.

EIT Health has played a crucial role in Cytocast’s success by providing strategic mentorship, networking opportunities, and access to a pan-European ecosystem of healthcare innovators. EIT Health supported Cytocast by selecting it for the

Deep MedChem (Czech Republic):

Deep MedChem is revolutionising early drug development with its advanced software tools designed to accelerate medicinal chemistry. By enabling extremely fast and accurate searches, and prediction of molecular properties within vast chemical spaces, the platform helps pharmaceutical, and biotech companies identify the most promising molecules for drug development. Despite being just a year old and in its seed funding stage, Deep MedChem has already gained significant traction with over 1000 users worldwide, first paying customers, and important collaborations with leading  vendors of chemical space such as eMolecules, Mcule, Otava Chemicals, and Enamine.

EIT Health has played a significant role in Deep MedChem’s journey by selecting them for the Through this initiative, EIT Health provided tailored mentoring, business development guidance, and access to a robust network of healthcare and biotech stakeholders across Europe. This pan-European support was crucial in helping Deep MedChem refine its strategy and accelerate its market entry. By leveraging EIT Health’s regional connections, Deep MedChem enhanced its visibility and credibility, paving the way for future growth and investment opportunities.

Gate2brain (Spain):

Gate2Brain is a biotech company developing peptide-based technology to enhance drug delivery across biological barriers, such as the blood-brain barrier, increasing treatment efficacy while minimising side effects. Founded in 2020 as a spin-off from IRB Barcelona, the Universitat de Barcelona, and Hospital Sant Joan de Déu Barcelona, Gate2Brain’s platform is applicable to various therapeutic areas. Notably, their therapy G2B-002, targeting brain tumours, received Orphan Drug Designation from the European Medicines Agency.

EIT Health played a crucial role in Gate2Brain’s success by selecting the company for an accelerator programme which provided strategic guidance, mentorship, and networking opportunities, helping Gate2Brain refine its business model and accelerate product development. EIT Health’s backing also contributed to Gate2Brain’s recognition during Pediatric Innovation Day, solidifying its position in the biotech landscape. Additionally, EIT Health’s pan-European network facilitated connections with industry stakeholders, enhancing Gate2Brain’s visibility and growth trajectory.

Fusix Biotech (Germany):

Fusix Biotech is a Munich-based start-up developing a synthetic oncolytic vector-based platform (InFUSETM) to advance cancer immunotherapy. Their innovative approach reprogrammes tumors from within, enhancing the body’s immune response to target multiple solid cancer types. They are currently developing a pipeline of “armed” vectors, encoding for a variety of therapeutic genes, for personalised cancer treatments and attracting exciting business development opportunities. With €1.6M in funding and several scientific milestones achieved, Fusix Biotech is positioned to transform the immuno-oncology landscape and is on track to bring its lead asset, FUSE102, to patients by 2027.

EIT Health has played a pivotal role in Fusix Biotech’s success. Through our accelerator programme, EIT Health provided strategic mentorship, expert guidance, and networking opportunities, accelerating Fusix’s growth and helping them refine their business model. Additionally, EIT Health’s Catapult competition offered valuable exposure to investors and industry leaders, enhancing Fusix’s visibility in the European biotech ecosystem. These initiatives have been instrumental in positioning Fusix Biotech as a leader in next-generation cancer therapies.

Polygon Therapeutics (France):

Founded in 2021, Polygon Therapeutics is a French biotech company pioneering the field of cardio-immunology. The company focuses on the intersection of the immune system and cardiovascular health, aiming to develop novel immunotherapies for acute cardiovascular diseases. Their lead programme targets myocardial infarction (MI), a condition affecting millions annually, where existing treatments fail to prevent long-term damage such as heart failure. Polygon’s discovery of the role of CD8+ T cells in heart damage following reperfusion has led to PLG-101, a first-in-class anti-CD8 depleting antibody. In preclinical studies, PLG-101 reduced infarct size by 60% and improved heart function by 25%, with no observed side effects.

EIT Health provided valuable support and coaching during the Polygon Roadshow, helping refine its equity story and investor approach. Polygon then secured $7.5M in seed funding independently, bringing it closer to clinical trials. Collaborations with organisations like INSERM are also driving key initiatives, particularly to strengthen the pipeline. With this momentum, Polygon is set to launch its First-In-Human trial in 2025 and advance its promising therapies for high-risk acute myocardial infarction patients in Europe and the United States.

aptaTargets (Spain)

aptaTargets is a clinical stage biopharmaceutical company specialised on the development of therapeutic aptamers. Their lead product, ApTOLL, is an innovative neuroprotectant aimed at reducing brain damage in Acute Ischemic Stroke (AIS) when used in combination with endovascular therapy (EVT). Following successful preclinical development and a Phase I First-in-Human trial, aptaTargets conducted a Phase II clinical trial in AIS patients with outstanding results, showing that ApTOLL was able to reduce the brain damage and significantly improve functional outcomes. Founded in 2014, aptaTargets is based in Madrid (Spain).

EIT Health has been instrumental in aptaTargets’ success, providing crucial funding and strategic support at key stages of development. Through EIT Health’s accelerator programme, aptaTargets secured significant grants, including funding to advance their clinical trials for AIS. Additionally, aptaTargets received invaluable assistance in expanding into new European markets, helping them gain access to new opportunities and networks. This support, coupled with funding from VCs, the EIC Accelerator and the Spanish Ministry, has enabled aptaTargets to plan for late-stage clinical trials and signed a partnership agreement with a pharmaceutical company, taking a major step forward in bringing ApTOLL to market.

The role of biotech seed funding in Europe

Funding is critical to the success of any biotech start-up, given the high costs associated with R&D, clinical trials, and regulatory approval. In Europe, seed funding plays a vital role in helping early-stage biotech companies transform their ideas into viable products.

Sources of biotech seed funding in Europe

1.       Venture capital (VC): Europe has seen a rise in biotech-focused VC funds, which specialise in early-stage investments.

2.       Government grants and EU programmes: Initiatives like Horizon Europe provide grants to start-ups working on groundbreaking projects. At EIT Health for example, projects and programmes are funded across education, innovation, and business creation, driving the healthcare advancements needed for sustainable economic growth in Europe.

3.       Angel investors and crowdfunding: Angel networks like European Business Angels Network (EBAN) and platforms like Seedrs (now Republic Europe) enable start-ups to raise capital directly from private investors.

Despite promising trends, the healthcare biotech industry faces challenges such as regulatory complexities, high competition for funding, and the demand for skilled talent. However, continued support from governments, investors, and academic institutions, along with strategic programmes, will help address these obstacles.

Europe is at the forefront of healthcare biotech innovation, driven by start-ups leveraging technologies like AI. With the support of robust funding ecosystems and organisations like EIT Health, these companies are poised to deliver life-changing solutions and shape the future of medicine. EIT Health plays a pivotal role in fostering innovation within this sector, providing funding and resources to a wide range of biotech projects. Through its various programmes, EIT Health supports start-ups and established companies alike, helping them navigate challenges and accelerate the development of groundbreaking technologies. With the ongoing backing of initiatives like these, Europe is well-positioned to remain a leader in healthcare biotech, driving transformative innovations that will define the future of healthcare.

 

[1] Lowe C R; Minssen T; Skentelbery C; (2024) Emerging Biotechnologies in Europe: Foresight for Policy. Available at: https://publications.jrc.ec.europa.eu/repository/ (Accessed: 15 January 2025).

[2] The top-performing countries in biotechnology (according to the OECD). Available at: https://www.labiotech.eu/best-biotech/top-biotech-countries/. (Accessed: 13 January 2025).

[3] Serrano D; et al. (2024) Artificial Intelligence (AI) Applications in Drug Discovery and Drug Delivery: Revolutionizing Personalized Medicine. Available at https://pmc.ncbi.nlm.nih.gov/articles/PMC11510778/ (Accessed 15 January 2025).

[4] Kim H; et al.; (2020) Changes in cancer detection and false-positive recall in mammography using artificial intelligence: a retrospective, multireader study. Available at: https://www.thelancet.com/journals/landig/article/PIIS2589-7500(20)30003-0/fulltext (Accessed 15 January 2025).