Growth
Life sciences and healthcare: 2025 financing trends
- Growth
- Report
- 7 minutes read
This report reflects on the key financing trends across life sciences and healthcare for the first half of 2025. Per our previous report, we again provide specific insights into Biopharma, Dx/Tools, Healthtech and Medtech and the forces driving change in the sector.
- The loudest signal of market health is the mega deal; investors are moving on companies with strong management teams, differentiated technology, and artificial intelligence (AI).
- Along with high-ticket fundraises, we’ve seen high quality investors at the forefront, placing headline grabbing big bets in select companies.
- Arguably the highlight of the first half of 2025 is the return of the healthtech IPO, with successful market debuts from both Hinge Health Inc. (NYSE: HNGE) and Omada Health Inc. (NASD: OMDA).
Mega deal mantras dominate the first half of 2025
Following a pivotal 2024, we've been monitoring 2025 with an eye to key themes supporting venture and scale in our life science markets.
Themes such as reduced inflation, interest rate cuts, and an opening IPO window. The loudest signal to-date brings us to the art of the mega deal, where investors are moving on companies with strong management teams, differentiated technology, and of course artificial intelligence (AI).
Along with high-ticket fundraises, we've seen high quality investors at the forefront, placing headline grabbing big bets in select companies.
Selected takeaways
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Metabolic and neurodegenerative steal the show
In biotech, compared to H1 2024, first financing in metabolic indications rose 821% (8x), while neurodegenerative deals jumped 783% (8x). |
Quality vs quantity
In health tech, investors are carefully considering opportunities with scale, revenue, and reliable metrics. |
Strength to strength
Average deal size rose 53% year-over-year, while total venture deployment increased by 41%. |
Michael White, Head of Lifescience and Healthcare, UK & Nordics"Following a pivotal 2024 in the UK & Nordic life science ecosystem, we’ve tracked 2025 with an eye on the forces shaping the VC-backed life sciences ecosystem. Stabilising inflation, central bank rate cuts, geopolitical volatility, and an opening IPO window in healthtech have all set the stage. The clearest signal so far has been the rise of the “mega-deal,” where investors are making oversubscribed bets on innovative drugs and devices backed by proven management teams, differentiated technologies, and increasingly, artificial intelligence. Alongside these big-ticket financings, high-quality investors have been especially active in obesity, techbio, autoimmune disease, neurodegeneration, surgical medtech, and alternative care."
This material including, without limitation to the statistical information herein, is provided for informational purposes only. The material is based, in part, on information from third-party sources that we believe to be reliable but, which have not been independently verified by us and, for this reason, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction.
Resources
UK & Nordics: Life Sciences & Healthcare 1H 2025 Venture Financing
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