CEO blog: 5-year biotech investment high shows confidence and consistency at a time of change

Dear Colleagues,

As we adjust to the new equilibrium of a new administration, the signs of UK sector growth are clear. So are its needs.

Today we publish our Q2 2026 financing report that shows another quarter of acceleration and a five-year high – with world class valuations from Seed to Series D.

Meanwhile, our regulation is progressive, enabling and stable, and SME trial recruitment is going in the right direction.

But there is a way to go until business as exceptional becomes business as usual. As the new administration forms, it has from us and the Sector Plan a clear set of priorities – access to institutional finance, publicly-funded science infrastructure, more patient trials and the NHS for pioneering rare disease medicines.

This will realise the world-class value of our wealth of science for patients, our economy and pensioners right across the UK.

We shall keep members briefed of the impact of Government changes as the day and week progresses.

In this update:

• Q2 2026 finance report: UK biotech venture investment hits a five-year high
• Pension fund investment in Draig Therapeutics
• MHRA: listening and acting for BIA members
• Venture capital summit: connecting investors
• Upcoming BIA events

A landmark quarter for UK biotech financing

Our Q2 2026 financing report gives the sector a strong story to tell. UK biotech financing hit a five-year high in the second quarter, with total equity financing reaching £2.11 billion, including a record £2.05 billion in venture capital.

The quarter was marked by Isomorphic Labs’ landmark £1.6 billion Series B round, but even without that exceptionally good deal, UK biotech companies secured £485 million in venture capital – almost double the £279 million raised in Q2 2025.

The UK accounted for 61% of Europe’s biotech venture capital total during the quarter and the market underneath the headline megadeal is becoming more balanced.

Seed investment has stayed resilient, Series A and later-stage companies are finding capital, and the £10 million–£25 million bracket has seen a welcome uptick.

This is not a moment for complacency, but it is a moment to recognise progress. The task now is to turn a better quarter into a durable recovery.

British Growth Partnership backs Draig: pension capital in action

To add further encouragement, the British Business Bank’s British Growth Partnership made its first life science investment in BIA member Draig Therapeutics as part of its £65 million Series B round.

It’s encouraging to see the partnership already bearing early fruit for the sector. We hope that this becomes the norm for other institutional funds.

MHRA: listening and acting for BIA members

I and Advisory Group Deputy Chair Martin O’Kane met with MHRA leadership last week to discuss how the agency is supporting BIA members across UK life sciences.

Having a responsive, progressive and stable world-class regulator is invaluable. It’s clear the MHRA is committed to being that partner.

Sandboxes for AI and frameworks for rare disease therapeutic regulation are tangible signs of listening and action. The needs of SMEs were clearly stated and heard.

We look forward to continuing this dialogue as the MHRA prepares to publish its new 5-year strategy.

VC summit: focus on UK institutions and international investment

Last week’s venture capital summit was joined by colleagues from the Office for Investment, covering both the Venture Capital Unit and Sterling20, and by Naveed Siddiqi to discuss the European Life Science Coalition.

These are the conversations that matter: how we crowd in capital, how government machinery can better understand the needs of biotech investors and what can be learnt from European approaches where collaboration is working well.

Looking ahead: Edinburgh, RNA and TechBio

Finally, a quick look ahead. Women in Biotech heads to Edinburgh on 30 September, the RNA Vaccines and Therapeutics Conference returns in London on 15–16 September, and TechBio UK comes back to King’s Cross on 13 October.

These are very different events, but they share the same purpose: bringing the right people into the room so that ideas become partnerships, partnerships become companies, and companies become the next generation of UK biotech success stories.