Reduced inflation, interest rate cuts, and geopolitical stabilisation in key markets, combined with FDA momentum, drove renewed optimism across Biopharma, Dx/Tools, and Healthtech in the UK and Nordic regions 2024.

Biopharma and Dx/Tools saw a comeback in the region with $3.3B in venture funding—a 14% year-over-year increase. Early-stage funding stabilised, with seed and Series A rounds holding steady. Platform and oncology led funding across stages, while neurology, obesity therapies, and innovative modalities like ADCs attracted significant investment. Dx/Tools raised large deals. TechBio also had a break-out year.

The UK’s Golden Triangle remained the epicenter of Biopharma/DxTools activity, while regional HQ’d VCs led 50% of first biopharma funding rounds, highlighting strong local engagement. Additionally, crossover funds led 35% of large financings—all of which suggest a possible 2025 IPO resurgence.

HealthTech’s 2024 UK and Nordic market mantra for “cashflow breakeven” seems to reflect in the data, where overall investing volume has decreased (particularly for first financings), and overall value reflects down 9% year-over-year.

In consideration of the “haves” we see a market with a new value pool for women’s health (boasting a unicorn), while both alternative care approaches and provider operations companies figured prominently in 2024.

On the alternative care side, we see companies providing new care pathways and paradigms for healthcare services from a people point-of-view. Largely driven by AI and the potential for healthcare systems savings, provider operations companies did continue gaining traction in 2024 to support physician, hospital, and health system workflows.

While Healthtech faced challenges, strong activity in biopharma and Dx/Tools set the stage for growth in 2025. The region’s innovation ecosystem is poised for further success, driven by improving macroeconomic conditions and investor confidence.