Biotech investment up 17% as UK secures Europe’s largest venture capital share

Financing for UK biotech jumped 17% at the start of the year from the previous quarter, with equity financing passing the £0.5bn mark.

New figures from the UK BioIndustry Association (BIA) reveal that in the first quarter (Q1) of 2026, financing attained a total of £552m.

Significantly the UK also secured the largest individual amount of all European biotech venture capital during the quarter of the year, with a 57% share.

In Q4 of 2025, the figure was £466m, indicating an increase of £86m overall, with a key contributor being a “rebound’ in venture capital investment, said the association.

BIA managing director Jane Wall commented: “It comes as great relief to see those green shoots that started showing end of 2025 grow into a more sustained and healthier shift in market dynamics in the first quarter of 2026.

“While headline figures often fluctuate based on the presence of a few megadeals, the underlying story of Q1 is one of accelerating momentum.”

In all, venture capital comprised £516 m in the first quarter of this year, or more than 93% of all equity financing in the sector. During Q4 2025 it similarly accounted for 94% of the sum at £442m.

Although encouraging, the Q1 result is substantially lower than the result for th same period in 2025, which recorded a peak investment of £924m.

However, the Q1 2025 figure was inflated, says the BIA, by “a few mega-rounds”. This year’s results show a broader distribution of investments.

Notably, deal activity increased significantly to 25 VC transactions, a rise of more than two thirds (67%) year‑on‑year, “pointing to a healthier, more active funding environment” even though deal sizes were more moderate. 

The UK’s success in securing well over half (57%) of all European biotech venture capital indicated the ongoing strength of the national market, said the BIA.

Wall acknowledged strong political support for the sector but repeated calls for Government to ensure its stated support converted into further action.

“With deal flow broadening and international interest in our world-class ecosystem high, now is the time to ensure that domestic capital follows the lead of our global peers to fully unlock the value of UK innovation and that the Government delivers its broader commitments through the Life Sciences Sector Plan,” she said.

Pic: Alev Takil