How UK growth businesses in the biotech sector can strengthen their position in a tougher investment environment

Investment is available but demanding

Raising investment is still possible but founders should not underestimate the work involved. Due diligence can take four to five months and investors now request more information than many early-stage teams expect. This often includes scientific or technical evidence to support the product, detailed projections, revenue forecasts and a clear budget that demonstrates control and realism.

Where founders tend to struggle is not with the ambition of the business, but with the volume and structure of the information required. Investment conversations move more smoothly when the financial picture is consistent and well prepared. Advisors such as Gravita can support by helping develop credible budgets and forecasts and ensuring that the information presented is clear, accurate and aligned with investor expectations.

Grant funding is more significant than many realise

Grants can be as important to a growth business as equity investment. Substantial funding is available, but only when the business applies for the right grant and understands what the awarding body is trying to achieve.

Popular grants attract heavy competition, which naturally lowers success rates. More specialist grants that align closely with the business’s field often offer a stronger chance. Understanding this early is vital. Advisors can help identify suitable grants, support the application process and complete any required grant audits.

Different founder types face different pressures

UK startups tend to fall into two broad groups, each with its own challenges.

1) Industry experienced founders

These founders have built their careers inside the sector they are now trying to improve. They usually move quickly and respond promptly to investor requests. Their main challenge is converting deep practical knowledge into the detailed financial and technical documentation that investors require.

2) Academic spin outs

These businesses often emerge from universities such as Oxford, Cambridge or Imperial. They are usually rich in intellectual capital but operate at a slower pace. Academic teams may take longer to gather documents or respond to due diligence queries, which can frustrate investors working to tight timelines and lead to missed opportunities.

Recognising which category your business sits in helps you anticipate where delays may arise. Clear responsibilities, structured financial records and ready access to supporting information all help maintain investor confidence.

Policy questions ahead of the 2025 Autumn Budget

Founders are watching developments around research and development policy and the future of business asset taper relief. The TBI report highlights concerns that the UK risks losing ground in key innovation sectors if its policy framework does not keep pace with competitors. This matters because many growth businesses are pre revenue and policy changes can materially affect future planning.

The full picture will only become clear once the Budget is announced on 27^th November. In the meantime, sound record keeping, accurate financial information and clear evidence of qualifying activity strengthen a business’s ability to adapt to whatever changes come.

Practical steps that improve outcomes

Businesses that prepare well tend to find the investment and grant process less disruptive. Solid financial information, realistic projections and timely communication all help investors and awarding bodies gain confidence in the organisation.

For growth businesses looking to strengthen their position, support is available. If you want informed guidance on preparing your business for investment or grant funding, contact Gravita.