Cambridge Life Sciences equity deals Q1 2025: Fewer transactions, larger ticket sizes
While the number of deals was down slightly from the 11 completed in Q4 2024, total value remained stable, with Q4 having recorded a combined $196.4m.
The largest transaction of the quarter was a $72m Series A round by Maxion Therapeutics, supporting its work in developing antibody-based therapies. The deal was led by General Catalyst, with backing from LifeArc, Monograph Capital, and BGF.
Also in Q1, Ignota Labs raised $6.9m in a seed round to fund its AI-enabled drug repurposing platform. The deal was supported by Montage Ventures and AIX Ventures. Diagnostics firm EDX Medical raised $3.8m, while Sareum Holdings plc closed a $1.38m raise to advance its pipeline of kinase inhibitors.
Additional transactions included Semarion, which secured $2.89m to advance its microfabrication technology for cell research applications.
Compared to Q4 2024, Q1 saw fewer transactions but higher average deal sizes – a possible reflection of investor focus on backing fewer, but larger deals. The Q1 average transaction size rose to approximately $24.8m up from $17.9m in the prior quarter.
Signs of Recovery or Structural Reset? The UK Life Sciences Deals Market in 2025
After a challenging few years, the global life sciences deals market is showing signs of renewal – although not yet a full recovery. For the UK, and particularly for East Anglia, 2025 is shaping up to be a year of strategic selectivity, regional resilience, and cautious optimism.
One of the most prominent national and global trends has been a decline in the number of successfully completed fundraising rounds, especially Series A. Yet paradoxically, average round sizes are significantly larger than in previous years.
According to Nature Biotechnology, the average Series A round globally in early 2024 reached $80 million – more than double the 2019 average. This indicates a “fewer but bigger” market dynamic, where experienced teams with strong assets attract significantly more capital.
The 2025 BDO USA Life Sciences CFO Outlook reinforces this trend, with 32% of CFOs citing fierce competition for a limited funding pool as their top concern. Meanwhile, only 11% of companies reported raising in a down round last year, suggesting valuations for high-quality assets are actually increasing. Capital hasn’t vanished – it’s just more concentrated, more cautious, and more conditional on excellence.
Another defining feature of the current market is the continued dearth of IPOs. Despite improving macroeconomic sentiment, the global public markets remain tight, and the UK has seen very few life sciences listings. According to Wilson Sonsini’s 2024 IPO Report, only 25 life sciences companies worldwide raised over $75 million via IPO last year.
Most were US-based therapeutics companies, with just a handful exceeding $500 million in value. In the UK, the London market remains quiet – many promising biotechs continue to explore exit or liquidity options overseas.
In parallel, the M & A landscape is shifting. The EY Firepower Report describes a marked pivot away from mega-deals to “smaller, smarter” transactions. Biopharma M & A deal value dropped 41 per cent in 2024, but deal volume remained stable.
Instead of large acquisitions of market-ready assets, companies are focusing on earlier-stage technologies, milestone-driven partnerships, and AI-enabled innovation. These moves reflect both caution and long-term thinking as the sector prepares for looming growth gaps tied to patent expirations later this decade.
So how does East Anglia fit in?
Despite national challenges, Cambridge and the wider East of England cluster continue to outperform. The region has attracted substantial Series A funding, forged valuable global partnerships, and maintained momentum in cell and gene therapy, RNA technologies, and AI-led discovery platforms. Local rounds frequently mirror or exceed national averages in both size and quality, suggesting East Anglia may be bucking the trend rather than simply mirroring it.
However, it’s not all smooth sailing. Preclinical companies without a seasoned executive team or differentiated science continue to struggle to access capital. IPOs are no longer a realistic short-term objective for most early-stage ventures. As a result, we’re seeing a strategic shift toward cash efficiency, focused pipelines, and early partnership formation as routes to resilience.
Looking ahead, three observations stand out:
1. Selectivity is the new normal – Startups must prepare earlier and communicate more clearly to stand out in a smaller pool of investable opportunities.
2. Partnerships are essential – Whether through licensing, AI collaborations, or co-development, partnerships are becoming central to survival and scale.
3. UK regional ecosystems matter – East Anglia’s continued strength highlights the importance of long-term investment in translational infrastructure and regional hubs of excellence.
The darkest days may be behind us, but 2025 is not yet a return to business as usual. For founders and funders alike, it is a time to stay focused, think long-term, and build strategically.
