The UK’s biotech sector has demonstrated resilience in the first half of 2025, according to the BioIndustry Association (BIA). The organisation’s latest investment report revealed that life sciences companies raised £1.23 billion in venture capital during the period, keeping the sector on track to meet or exceed last year’s performance.
The BIA highlighted a series of large funding rounds, including Isomorphic Labs and Verdiva Bio, which were among the biggest deals closed. However, the report noted a drop in activity during the second quarter, with £344 million raised, reflecting wider global headwinds in biotech investment.
Despite short-term fluctuations, the BIA pointed to long-term structural progress in UK biotech financing. This includes new mechanisms being developed to unlock institutional capital, supported by initiatives from the City of London and the British Business Bank. The association believes these shifts will strengthen the UK’s ability to compete globally in life sciences innovation.
The UK continues to be one of the most attractive destinations for biotech investment in Europe. While quarterly figures fluctuate, the long-term signals are strong, with deep institutional capital increasingly coming into play, said BIA Chief Executive Steve Bates.
The report underscores the importance of continued collaboration between government, investors, and innovators to ensure the UK maintains its leadership position in biotechnology.
