At the recent BioTrinity Conference in London, experts underscored the urgent need for increased government funding to enhance venture capital financing in the UK life sciences sector.

Carmine Circelli from the British Business Bank highlighted that, in 2024, the UK life sciences sector was the only technology area that did not see an increase in its global share of venture capital funding over the past decade.

He attributed this stagnation to a significant gap between the UK healthcare market and its global counterparts, driven by negative market perceptions of risk and lower expected returns compared to other sectors.

Circelli also pointed out a shortage of active fund managers in the UK, which is hindering financial support for local life sciences companies; a 2024 survey revealed that 69% of VC fund managers viewed conditions for raising new funds as poor.

Despite these challenges, the UK biotech sector raised £3.5 billion in 2024, representing a remarkable 94% increase from the previous year, although overall equity financing in the UK declined by 14% from 2022 to 2024.

The BioIndustry Association reported that venture capital financing constituted £2.06 billion of the total fundraising in 2024, marking a 64.8% increase from the previous year, indicating a potential recovery in the industry.

To further support this recovery, the Life Sciences Investment Programme, with a budget of £200 million, aims to attract an additional £400 million in private investments to bolster the sector's growth.

Additionally, the British Business Bank launched the £425 million 'Future Fund: Breakthrough' in April 2021 to support life sciences and deep tech firms focusing on research and development.

Mark Andrews from the British Business Bank called for more government support to strengthen the UK venture capital landscape, referencing the Life Sciences Investment Programme as a key initiative.

Andrews emphasized that combining public investment with private funding can make investments more appealing to venture capitalists by mitigating risks.