New research from Pioneer Group, in collaboration with Beauhurst, reveals an evolving investment landscape for UK life sciences — with a marked shift toward funding more mature companies alongside persistent regional disparities.

The report highlights that while the total number of deals in 2024 dipped slightly to 595 from 656 in 2023, the total capital raised surged to £3.54 billion, up from £2.91 billion. Notably, the average deal size climbed to £6.19 million, the second-highest of the past decade. This signals growing investor confidence in larger, later-stage life science businesses capable of accelerating product development and market entry.

Venture-stage companies, once dominating deal volume but representing a smaller share of deal value, saw their investment share rise sharply from 12.7% in 2022 to 44.4% in 2024. This underscores a clear trend of investors prioritising companies further along the commercialisation path — potentially driven by a need for de-risked assets amid broader funding uncertainties.

Despite this positive momentum, the report also shines a light on the persistent regional imbalance within UK life sciences. The ‘Golden Triangle’ — London, the South East, and East of England — continues to attract the lion’s share of spinouts and equity investment, driven by powerhouse universities in Cambridge, Oxford, and London. Emerging clusters in Manchester, Glasgow, Belfast, and elsewhere struggle to access comparable capital, despite having strong research capabilities.

Pioneer executive director Dr Glenn Crocker MBE said: “If spinouts from the top 15 UK biological sciences universities matched Cambridge’s average funding, it could unlock an additional £1.6 billion in investment over five years. This disparity highlights the urgent need for targeted funds that can support promising ventures beyond the traditional hubs.”

He suggests a UK life sciences fund with an annual target of £300 million aimed at university spinouts could significantly boost regional innovation and help level the playing field.

This research, which spans data back to 2005, also highlights how funding has increased eightfold for start-ups formed between 2020 and 2024 compared to those from 2005-2009 — reflecting the UK’s growing global influence in life sciences despite ongoing challenges in early-stage funding.

For pharma and biotech stakeholders, understanding these funding dynamics is essential as they shape partnerships, R&D collaborations, and future drug development pipelines in the UK.