Even though British biotech venture capital was up 44% in the third quarter on the same period last year, follow-on financing remains thin and there are still no IPOs. 

British biotech venture capital investment reached £270 million, up 44% from £187 million in the third quarter of last year, according to new figures from the BioIndustry Association (BIA), as the sector heads for its best year since 2021.

While the quarter for biotech venture investment fell below the second quarter (£2.1 billion), which was dominated by Isomorphic Labs’ £1.6 billion Series B financing, this quarter-on-quarter drop is in line with broader UK venture investment trends. 

This takes the sector’s total venture investment for the year so far to £2.8 billion, already more than in any full year from 2022 to 2025. The record year for UK biotech venture fundraising was 2021, when £3 billion was raised. However, 2026 has been boosted by Isomorphic’s £1.6 billion raise and CellCentric’s £163 million raise, both in the second quarter.

Basecamp Research led the quarter with a £104 million Series C, which it will use to train its next generation of AI models and propel AI-designed medicines towards the clinic. 

NVIDIA, which counts Basecamp among the UK start-ups it backs, announced new planned investments in two more London AI biology companies this month. This is a strong indicator that the UK is where life sciences and AI come together, validated by big pharma and big tech piling into the market.

UK biotech raised £421 million in total equity in the third quarter, up 113% on the same period last year (£198 million).

The UK has again retained its position as the top destination for venture capital investment, raising 26% of the European total, which came to £1.1 billion.

Follow-on financing reached £151 million, but Silence Therapeutics’ £130 million NASDAQ raise accounts for most of that. The UK biotech IPO winter has also continued, with no IPOs for 17 quarters.

“The pattern this year is clear: UK science attracts expert global capital, but we are missing an opportunity to see returns recycled in our own ecosystem, because too few British investors are taking part. This is true in both private and public markets,” said BIA chief executive Chris Molloy. 

“Our focus is on making sure companies at all stages of development can access the finance they need to grow, and that the UK benefits from the upside. Government has a vital role to play in getting the environment right for that, and in incentivising wealth creators to recycle their gains,” he added.