UK biotech accelerates growth with £3.5bn investment surge
The UK biotech sector achieved significant growth in 2024, raising £3.5 billion in investment—a staggering 94 per cent increase compared to the previous year, says the BioIndustry Association (BIA).
This represents the highest annual figure since the £4.5 billion raised in 2021 and is a testament to the sector’s resilience, innovation and global appeal, even in the face of challenging economic conditions, it added.
The new figures are revealed in the BIA's annual UK biotech financing report.
however, investment was concentrated in a small number of companies that raised big rounds, primarily from US investors, who are increasingly attracted to the UK sector.
Steve Bates OBE, CEO of the BIA, said: "The UK is a global leader in biotech innovation and attracts the most venture capital in Europe.
"This year’s figures demonstrate that biotech is a vibrant growth sector of the UK economy with an exceptional ability to attract global investment. From pioneering early-stage research to scaling groundbreaking therapies, UK life science companies are addressing some of the world’s most urgent health challenges. The strong international investor interest we’ve seen this year reaffirms global confidence in the UK’s life sciences innovation ecosystem."
However he added that while foreign investment is welcome, UK investors are missing out on an opportunity to benefit from a UK growth industry and financial returns and jobs are being lost from the British economy as a result.
"Pension reforms by the UK government now need to be accelerated to enable increased participation for pension savers in this growth sector from UK institutional investors."
Key highlights from the report include:
- Venture capital (VC) funding: £2.06 billion secured across 111 deals—the best performance since the 2021 peak and a 64.8% increase from 2023
- Global appeal: North America accounted for 26% of VC investors in the UK sector—their largest share since 2021—while European investors made up 15%. This surge in international capital illuminates the UK’s position as a magnet for global biotech investment.
- Public markets: £1.5 billion raised through follow-on financings, marking a 170% increase from 2023. UK companies listed on Nasdaq dominated these raises, highlighting the global recognition of the country’s biotech innovation.
The UK government has identified the life sciences sector as one of eight priority sectors for its industrial strategy, due to its ability to drive economic growth. Chancellor Rachel Reeves has also highlighted the importance of pension fund reform to increase investment in UK equities and growth industries.
The findings of this report demonstrate the continual growth of life sciences and highlight that the UK’s biotech sector is on a positive trajectory, powered by cutting-edge science and significant foreign investment, which could be bolstered by greater participation from UK financial institutions.
