In July2025,the government released its ModernIndustrial funding gaps, regulatory complexity and delayed market entry, alongside difficulties accessing later-stage capital.6 Strategy, outlining eight priority sectors for R&D funding. knownas IS-8s.Threeof these -Life Sciences, Digital and Technologies, and Professional and Business Services - dominated the spinout equity landscape. Life Sciences address these barriers by reducing clinical trial set-up recorded the highest deal count (206), followed by Digitaltimes, streamlining procurement and improving efficiency Services 106),reinforcingtheirroleaskeygrwthdriversin Agency. It also proposes up to f520m in manufacturing the UKeconomy.Industries within Life Sciences and Digital funding and f600m for a national health data platform,7 and Tech-nologies also performed strongly. Application software led with 100 deals, followed by pharmaceuticals to commercially leverage their research and regain (88), clinical research(80) and biotechnology (77),broadly investment momentum. By contrast, several industries reflecting thewider pinout population, where life sciences year averages on deal value. Artificial Intelligence (71 deals), CleanTech, robotics and automation, sensors and However, while Life Sciences led by deal volume, its Big Data all recorded higher average round sizes. 2025 performance fell below its three-year trend. Pharmaceuticals, clinical diagnostics and precision Image and voice recognition was a standout, supported by medicine, aswell astheLife Sciences IS-8overall,recordeda 55.7m investment into Oxa in December 2025. Digital to their recent averages,indicating moderated momentum selective equity market, alongside faster development rather than structural decline. Life Sciences spinouts face cycles and lower upfront capital requirements than their 3 Companies can be included in more than one industry. For more information, please see the Methodology section. 4 Life Sciences (IS-8) comprises a number of the industries displayed in the chart including: Pharmaceuticals, Clinical research, Written Evidence, accessed [February 18, 2026]. 7 UK Government, Life Sciences Sector Plan, published 16 July 2025, Office for Life Sci Intelligence, Data provision and analysis, Application software, Electronics hardware and CleanTech