UK life sciences sector struggles with limited venture capital funding, but biotech sector sees improvement.

From Yahoo Finance: 2025-04-02 13:11:00

In 2024, the UK’s life sciences sector showed no improvement in global venture capital funding for a decade. Negative market sentiment, perceived risks, and lack of active fund managers hinder growth. British Business Bank’s Life Sciences Investment Programme aims to bridge the finance gap with public-private partnerships, attracting more VC investments.

The UK struggles with a lack of active fund managers and negative market sentiment in the life sciences sector. The British Business Bank’s initiatives aim to address these challenges, with the goal of attracting more private financing and boosting growth in the industry. Public-private partnerships are seen as a way to reduce risk for VC investors.

Equity finance raised in the UK dropped by 14% from 2022 to 2024, according to the Office for National Statistics. However, the UK biotech sector saw a significant improvement, with £3.5bn raised in 2024, a 94% increase from 2023. VC financing accounted for £2.06bn, signaling a potential upturn in the industry.



Read more at Yahoo Finance: UK life sciences venture capital funding lags behind