Akesios Associates: Recent article on UK Life Science Investment
Over 2025 £2.4bn (+9% vs 2024) was raised by UK Life Science companies. The average value of larger (£20m+) UK Life Science private funding rounds (n = 25) has doubled over the past 4 years (+93% to £1.96bn), and represented 87% of all private UK funding. The lack of a viable UK IPO market for unlisted Life Science companies, has forced companies, and their investors, to become increasingly reliant on private follow-on rounds in order to advance towards typically M&A-based liquidity events and overseas listings. These currently offer levels of return far exceeding those in the UK public capital markets.
Incredibly, the total amount raised over 2025 has already been matched in the first five months of 2026, and there are even potential ‘green shoots’ in the UK public capital markets. Notwithstanding a significant volte face in sector sentiment, or very adverse global macroeconomics, we expect 2026 to be a stellar year for investment into UK Life Sciences. However, capital raised via smaller (sub-£20m) private rounds (n = 66) significantly decreased (-49% to £289m) in 2025, and represented just 13% of all private UK funding.
This presents a more challenging environment for the numerous earlier-stage companies seeking more modest levels of funding in what is now for them a top-heavy, underfunded and increasingly competitive ecosystem. Whilst investor appetite for investment remains, differentiation is key. We recommend: (i) proactive and considered investor engagement; (ii) good operational and overarching governance (iii) robust, credible and commercial narrative, underpinned by observable activity; (iv) focus on critical pathway driven execution; (v) value-based project management, and (vi) alignment of Board and management with required capabilities. If necessary, reliable third party advice should be sought and implemented.
