The UK's mRNA ecosystem: a financial snapshot

This blog explores the key financial trends underpinning the UK's position in the mRNA revolution. The analysis, provided by Wendy Quainoo, the BIA’s Data Insights Executive, highlights the opportunities and challenges ahead, ensuring we can sustain the momentum needed to remain a global leader.

As the BIA launches its updated mRNA Revolution explainer, this blog takes a closer look at one of the crucial factors driving the UK's life sciences sector: investment.

Navigating the financial landscape of a fast-moving sector like mRNA is a challenge, but it's crucial for understanding where the UK stands. While the past few years have brought significant shifts, the core strengths of our ecosystem remain strong, from dedicated domestic investors to vital public funding.

The UK’s mRNA biotech sector remains a critical hub for innovation and investment, demonstrating notable strengths despite fluctuations in market activity. The BIA's latest mRNA explainer highlights the key trends in venture capital (VC) funding, grant support, and the active investor community that together underpin the UK's leadership position in this strategic field.

Nationality of investors in UK mRNA venture deals

The UK accounts for most of the investor nationality in domestic mRNA biotech deals, representing 52% of all investments. This is followed by significant participation from the Americas at 27% and Europe at 10%. The dominance of UK-based investors showcases a strong domestic commitment to the sector.

Venture capital investment trends (2018–2024)

UK mRNA biotech venture capital investment peaked during the pandemic, with £284 million in 2020 and £414 million in 2021, which accounted for 14% of all UK biotech VC that year (£2.9 billion). Outside this period, investment was much lower: £111 million in 2018, £45 million in 2019, £96 million in 2022, £41 million in 2023, and £57 million in 2024.

mRNA represents just one of many innovative biotech modalities, so its investment share is smaller relative to the broader sector. Even so, the sharp drop from pandemic-era highs to recent lower levels signals the need for renewed venture capital investment. Sustained backing is essential if the UK is to retain its leadership and momentum in mRNA innovation.

Public grant funding supports innovation pipeline

Public sector funding plays a pivotal role in sustaining the UK’s mRNA biotech innovation, providing crucial support across research, development, and manufacturing capacity. From 2018 to 2024, a total of £35 million was raised through 65 grants, with Innovate UK as the primary grant funder, contributing over £19 million across 58 grants. The Life Sciences Innovative Manufacturing Fund (LSIMF) awarded the CDMO Touchlight a £14 million grant to fund scale-up equipment, expand its Hampton facility and accelerate client Active Pharmaceutical Ingredient (API) programmes toward late-stage development and commercialisation. Other significant contributors include the Horizon 2020 program and the Bill & Melinda Gates Foundation.

Beyond Innovate UK, the UK government has directly invested heavily in mRNA manufacturing infrastructure and strategic partnerships. A few key highlights include:

• Government industry backing (August 2025): £29.6 million of government backing announced to land Wellcome Leap’s RNA readiness and response programme (R3) technology at CPI, Darlington. This investment underscores the growth of the life science industry, driven by innovative SMEs, through enhanced infrastructure, strategic investment, and collaborative partnerships, all aimed at accelerating the delivery of RNA-based therapies to patients.
• BioNTech Partnership (May 2025): The government pledged up to £129 million in grant funding over 10 years to support BioNTech’s £1 billion investment in UK mRNA R&D and manufacturing facilities. This major initiative is creating hundreds of skilled jobs while expanding the UK’s capacity for cutting-edge cancer immunotherapies and mRNA vaccines.
• Life Sciences Innovative Manufacturing Fund: LSIMF provides capital funding aimed at strengthening domestic medicine manufacturing and increasing health resilience. Funding is available for the manufacture of human medicines, medical diagnostics and MedTech products.
• Moderna collaboration (December 2022): A 10-year partnership was established with Moderna to build a vaccine manufacturing facility capable of producing up to 250 million doses per year. This initiative includes an innovation and technology center expected to generate over 150 high-skilled jobs.

These direct government investments, alongside Innovate UK grants, form a comprehensive public funding ecosystem that is critical in maintaining the UK’s global leadership in mRNA innovation and manufacturing, especially at a time when private venture capital investment remains volatile.

Active and diverse investor community

The UK's mRNA biotech sector is supported by an active and diverse investor community. Rather than a small group of dominant players, the landscape features a broad range of VC firms that are committed to the sector's long-term growth.

Notable investors who have each participated in three or more deals include Cambridge Innovation Capital, Seroba Life Sciences, and Pfizer Ventures. Their continued activity showcases a robust commitment to the sector's potential. This dedicated support from both domestic and international firms is crucial for nurturing innovation and ensuring the UK remains a competitive hub for mRNA development.

Together, public grants, strategic partnerships, and committed investors provide the foundation for the UK’s mRNA leadership. Yet with VC activity below pandemic-era highs, continued policy and investment focus will be vital to ensure the UK remains globally competitive in this transformative field.