Biotech investors want to see a clear strategy

What stands out from a legal and investment advisory perspective is not the headline numbers but the underlying behaviour of the market. We’re seeing investors place greater emphasis on wanting more clarity of strategy plans, robust governance, and well‑managed IP – signalling a shift towards being much more selective in where they invest. This aligns with capital increasingly concentrated in fewer, better‑prepared companies, making the quality of a biotech’s underlying science and commercial viability more important than ever.

Against this backdrop, the Oxford–Cambridge Growth Corridor remains one of the UK’s most compelling investment regions. Cambridge in particular continues to distinguish itself, with new data showing that early‑stage life sciences and deep‑tech companies in the area have secured £7.9 billion in investment since 2015.

International investors are increasingly active participants in these funding rounds, now contributing to almost 40 per cent of deals, which is a substantial rise from a decade earlier.

When you look at investment intensity per company, the Oxford–Cambridge region performs exceptionally well, with Cambridge‑based life sciences companies securing more than double the average investment seen in nearby regions.

The last 12 months have seen CellCentric raise a major $120m Series C round to accelerate development of its oncology treatment, Constructive Bio secure $58m in Series A funding to scale its synthetic genomics platform, and NRG Therapeutics close a £50m Series B to advance its neurodegeneration programmes into clinical development.

In Oxford, Ultromics also landed a $55m Series C to expand its cardiology platform globally. All of this has sparked some genuinely interesting conversations about what’s coming next.

For investors, this concentration of capital reflects confidence not just in individual businesses but in the well-connected innovation ecosystem: a strong foundation of academic research, pools of technical talent, and a mature network of advisers, incubators, and specialist professional services.

Government intervention has also played a central role in supporting this growth. The recent renewed commitment to developing the Oxford–Cambridge Growth Corridor, underpinned by £13 billion in infrastructure investment, is designed to encourage further private capital and strengthen the area’s long‑term competitiveness. Similarly, national investment strategies and sector‑focused policy reforms continue to place life sciences as a key pillar of the UK’s long‑term economic plan.

We’re also seeing structural shifts in how biotech companies in Oxford and Cambridge approach funding. Traditional venture capital remains important, yet many businesses are now exploring alternative financing models – including research partnerships, milestone‑based strategic collaborations, venture debt, and alternative funding options that do not require selling equity. These approaches help companies preserve equity while still accessing the resources they need to progress their scientific work.

The broader indicators remain positive and UK life sciences investment during early 2025 reached its strongest first‑quarter level since 2021, signalling genuine appetite for well‑positioned companies. Pipeline development, job creation, and occupier demand for lab space – particularly across the Oxford-Cambridge Growth Corridor - continue to trend upward, supported by a steady delivery of new R&D facilities expected to reshape the region throughout the next decade.

The message is a measured one: while the UK biotech investment landscape is more discerning, it remains fundamentally strong. The opportunities are significant but so too is the need for thoughtful preparation. Sound IP strategy, well‑structured funding plans, and early engagement with a diverse investor base have never been more important.

The future of biotech investment in the region looks steady and quietly optimistic, shaped not by headline‑grabbing megadeals but by sustained, thoughtful growth and the continued strengthening of an already world‑class innovation corridor.