UK biotech financing April–June 2025
The first half of 2025 has underscored the enduring appeal of UK biotech innovation, with total venture capital investment reaching £1.23 billion. This robust performance nearly matches the £1.25 billion raised across the entirety of 2023 and puts the sector half-way to matching the 2024 total.
While Q2 2025 saw a significant dip in funding to £344 million (down from £881 million in Q1), this figure needs to be viewed in the context of an exceptional Q1, which was heavily skewed by two landmark megadeals: Isomorphic Labs (£449 million) and Verdiva Bio (£327 million). An almost-equal number of deals were done quarter-on-quarter and big raises continued to roll in, with Draig Therapeutics and CellCentric both highlighting the sector’s fundamental strength and its ability to attract substantial investment.
Meanwhile on public markets, macro-economic headwinds continue to weigh heavily on deal flow for all companies, regardless of their location. Only £16 million was raised by public UK companies. As a result, sector financing for the quarter totalled £360 million.
