Kitney on Capital: The investment landscape for Engineering Biology in 2025
The UK is home to a vibrant and growing synthetic biology community, with estimations that the UK market generated $1.1 billion in 2024, and is expected to reach $3 billion by 2030. Many of these successes are attributed to a strong base of dedicated academics, investors, industrial leadership, and policymakers in the UK. In the past decade, the UK has recognised the potential of the biotechnology sector and emphasised greater focus on developing its bioeconomy to address food security, improved healthcare and sustainability concerns. However, without investment, scaling this sector becomes tough.
In this newsletter Professor Richard Kitney, Co-Director of SynbiCITE, has given his insights on the current engineering biology investment landscape, and where he thinks it is headed.
Kitney on Capital
One of Kitney’s key observations from this year’s SynBioBeta conference was a clear hesitancy by US investors in investing in the engineering biology sector. As Professor Kitney explained, although many investors in the US are sitting on large reserves of capital, they are waiting before making commitments. This caution reflects the uncertainty around market direction and broader geopolitical factors in the US.
In contrast, the investment environment in the UK and Europe is currently thriving. There is continued enthusiasm for synthetic biology, especially given its relevance to net zero targets and broader sustainability goals. As such, international capital, especially from Asia, is now turning toward Europe and the UK. This interest is likely driven by the UK’s strengths in research and as Kitney pointed out, this growing attention from global investors speaks to the UK’s key role in the industry.
A notable trend is the evolving role of pension funds in Europe and the UK. Kitney thinks that these are now starting to look more seriously at synthetic biology as a potential investment area. This shift has been influenced by the example set by Canadian pension funds, which have adopted new strategies and seen significant success as a result. Their track record is now encouraging European funds to reconsider what types of investments can deliver long-term growth. For synthetic biology companies where return timelines are often close to a decade, this kind of capital is precisely what’s needed.
An encouraging development is that many early-stage synthetic biology companies are now reaching the five-year mark. For investors, this milestone is significant as it signals that these businesses are beginning to prove that they are commercially viable. Investors are recognising that while the synthetic biology sector may require longer term investments, the upside is still there.
Of course, capital alone isn’t enough. The UK has a longstanding reputation for excellence in basic research, but this alone isn’t enough for making money. Despite recent announcements of increased funding for science, there remains a concern that synthetic biology does not receive the attention or investment it deserves. Fields like AI often dominate the spotlight, but synthetic biology has an equally compelling story to tell, particularly as it provides solutions for many issues our society faces.
Overall, the picture is one of cautious optimism. The investment landscape in the UK and Europe is becoming more sophisticated, with a growing understanding of the timelines and opportunities within synthetic biology. The pieces are starting to fall into place with growing global interest, long-term capital, proven progress, and relevance to some of society’s biggest challenges. With continued support for translation and scale-up, synthetic biology is well on its way to becoming a defining industry of the 21st century.
Stay connected to the fast-moving world of engineering biology with The SynbiTECH Brief – a fortnightly LinkedIn newsletter bringing you curated industry news, expert commentary, and behind-the-scenes updates on SynbiTECH2025.
Each edition will deliver fresh perspectives on the commercialisation of synthetic biology, from funding trends and regulatory shifts to platform innovations and sustainability solutions. Whether you’re a founder, investor, policymaker or scientist, you’ll find timely insights and thought-provoking ideas that connect the lab to the market.
