British biotech firms raised £2.11bn in equity financing, led by a £1.6bn round for Isomorphic Labs, marking a recovery in venture capital.
UK biotech financing reached £2.11bn in Q2 2025, the highest level in five years, with venture capital accounting for £2.05bn of the total. The surge was driven by Isomorphic Labs, which secured £1.6bn for its AI-powered drug development platform.
The £498m raised by other UK biotechs nearly doubled the amount from Q2 2024, while follow-on financing rose to £58m, up 61% from Q1 2025. Despite gains in private markets, public listings remained stagnant, with no IPOs filed and minimal Nasdaq activity.
The recovery follows a challenging 2024, with Q1 2025 already showing early signs of improvement. Industry figures caution that broader challenges persist despite the uptick in funding.