European life science companies that receive venture capital funding tend to have lower underpricing at the time of their initial public offering (IPO) compared to those without VC backing. This is because venture capitalists play a certification role, leading to better performance for VC-backed firms in the first day and week of trading. The study focuses on the period of 2002-2007 to avoid the effects of the financial crisis. The life science industry is attractive to venture capitalists due to its innovative nature, but also carries risks due to regulation and ethical concerns. VC-backed firms outperform non-VC backed firms in terms of underpricing at IPO, highlighting the importance of venture capital in the success of European life science companies.