UK Biotech Investment Soars to £3.5bn in 2024, Reports BIA

01 Feb 2025: According to the BioIndustry Association’s (BIA) annual financing report, the UK biotech sector raised £3.5 billion in 2024, marking a 94% increase from the previous year. This represents the highest annual total since 2021, when £4.5 billion was raised.

The report highlights the exceptional growth of the UK’s biotech industry, driven by cutting-edge research and strong global investor interest. Venture capital (VC) funding accounted for £2.06 billion, reflecting a 64.8% year-on-year increase, the highest level since 2021.

• International investment surged, with North American investors contributing 26% of VC funding—the largest share in three years—while European investors accounted for 15%.
• On public markets, UK biotech companies raised £1.5 billion through follow-on financings, a 170% increase from 2023, largely driven by firms listed on Nasdaq.
• Large-scale venture deals included Ottimo Pharma’s £110.5 million Series A funding, Pheon Therapeutics’ £94 million Series B funding, and Myric Bio’s £90 million investment to advance its proprietary ADC platform.

These findings align with previous research from the BIA and Citeline, which emphasized the UK’s dominance in cell and gene therapy. In 2023, UK companies secured 55% of Europe’s cell and gene therapy venture capital funding, reinforcing the country’s position as a leader in this cutting-edge field.

Looking ahead to 2025, the UK biotech sector is expected to build on its strong momentum from 2024, supported by record-high venture capital investment and increased international backing. However, the pace of IPO recovery will depend on market stability and investor confidence, particularly in response to global economic conditions and shifts in US leadership. While the surge in VC funding provides a solid foundation for growth, sustaining this progress will require continued success in scaling biotech companies and attracting both domestic and international investment.