I run a life sciences, biotech or medtech business
Grants, R&D relief and the specialist investors behind long, costly research, cheapest first.
Life sciences businesses can spend years and large sums on research, trials and approvals before they sell anything. Few lenders will fund that, so the money usually comes from grants, R&D tax relief and investors who understand the science and the timescales.
Under the merged R&D scheme, for accounting periods starting on or after 1 April 2024, the R&D expenditure credit is 20%. Loss-making small companies that spend at least 30% of their total costs on R&D may claim enhanced support instead. Later on, some companies raise money on a stock market.
19 routes to look at, cheapest first
Compare the first 4 side by side- L0
Free or nearly free
Little or no cash cost, though most take time and admin. Some bring money in, and a few have small fees.- Grants, tax reliefs and prizes
Capital allowances, Patent Box and creative-industry reliefs
Tax reliefs that cut your tax bill when you buy equipment, earn profits from patents, or make films, TV, games or shows. They do not bring in new money, but they leave more of your own cash in the business.
Months - Grants, tax reliefs and prizes
Equity-free accelerators, fellowships and prizes
Programmes and competitions that give founders money, training or both without taking shares. Places are limited and competitive, and the money is usually modest.
MonthsUp to £75k - Grants, tax reliefs and prizes
Innovate UK grants
Competitive grants from the UK's innovation agency that pay part of the cost of innovation projects. You do not pay them back, but you must fund the rest of the project yourself.
Months - Grants, tax reliefs and prizes
Local, regional and sector grants
Grants from councils, combined authorities, the devolved governments and sector bodies, often for equipment, jobs, energy saving or exporting. You do not repay them, but they are usually small and come and go.
MonthsUp to £315k - Grants, tax reliefs and prizes
Research and development (R&D) tax relief
Companies that spend money on qualifying research and development can claim it back through Corporation Tax, as a tax credit or, for some loss-making companies, as cash.
Months
- Grants, tax reliefs and prizes
- L2
Mainstream secured debt
Standard borrowing from banks and mainstream lenders, often secured on assets or backed by a personal guarantee.- Government-backed and community lending
British Business Bank regional investment funds
Government-backed funds for smaller businesses in each nation and region, offering loans from £25,000 to £2 million and equity up to £5 million through local fund managers. Terms are commercial, not subsidised.
Weeks£25k to £5mLoans, or shares if you choosePersonal guarantee likely - Government-backed and community lending
Development Bank of Wales
The Welsh Government's own development bank, offering loans from £1,000 to £10 million and equity investment to businesses based in Wales or moving there. Loans are priced on risk.
Weeks£1k to £10mLoans, or shares if you choosePersonal guarantee likely - Government-backed and community lending
Invest NI loan and equity funds
Loan and equity funds backed by Invest NI, Northern Ireland's economic development agency, from small business loans of £10,000 to equity rounds of up to £2.5 million. Each fund is run by a private fund manager.
Weeks£10k to £2.5mLoans, or shares if you choosePersonal guarantee likely - Government-backed and community lending
Scottish National Investment Bank
Scotland's public development bank, which invests £1 million to £50 million of long-term debt or equity in businesses and projects that serve its missions: net zero, places and innovation.
6 months or more£1m to £50mLoans, or shares if you choose
- Government-backed and community lending
- L3
Specialist secured debt
Borrowing secured on specific assets such as invoices or stock, with more fees and conditions than mainstream debt. - Equity rungs. These routes cost no interest, but you give up part of the ownership and control of your business. They are ranked by how much you give up, not by a made-up interest rate. Over time, equity can be the most expensive money of all.E1
Light dilution
You sell a small share of the company, usually to many small investors or people you know, and keep control of how it is run.- Crowdfunding and community finance
Equity crowdfunding
Selling shares in your company to many investors, often including your customers, through an online platform authorised by the FCA.
MonthsGives up shares - Private equity investment
Friends and family
Money from people you know, as a loan, as shares, or both. Often the first money into a new business and on flexible terms, but it puts relationships at risk if things go wrong.
WeeksLoans, or shares if you choose - Hybrid instruments
Advance subscription agreement (ASA)
An investor pays now for shares that the company will issue later, usually at the next funding round. If set up correctly, it can qualify for SEIS or EIS tax relief, unlike most convertible loan notes.
WeeksGives up shares - Hybrid instruments
Convertible loan notes (CLNs)
An investor lends money to your company on the understanding that the loan will usually turn into shares later, often at a discount, when a set event such as the next funding round happens.
WeeksMay give up shares
- Crowdfunding and community finance
- E2
Significant dilution and investor rights
Investors take a meaningful stake and usually get rights such as a board seat, a veto over big decisions, or a preferred return.- Private equity investment
Angel investment
Experienced individuals, often investing together as a syndicate, buy a minority stake in an early-stage company and give advice and contacts as well as money.
Months£5k to £500kGives up shares - Private equity investment
Corporate venture capital
A large company invests in a smaller one that could help its own business, in return for shares. You get money plus the corporate's contacts and know-how, but you share your ideas with a possible competitor.
6 months or moreFrom £1mGives up shares - Private equity investment
Family offices and wealthy private investors
Wealthy families, often through a private company that manages their money (a family office), invest directly in businesses. They can be more patient and flexible than funds, but there is no standard process and they are hard to find.
6 months or moreGives up shares - Private equity investment
Venture capital
Professional investment funds buy minority stakes in young, high-growth companies, usually in several rounds, and expect a large return when the company is sold or listed.
6 months or moreGives up shares
- Private equity investment
- E3
Major dilution, loss of control or public obligations
Investors take control, or the company becomes publicly traded and takes on ongoing public rules, costs and scrutiny.
Worth knowing
- Plan how much money each stage of research needs, and what you will have proved by the end of it. Investors fund stages, not the whole journey.
- Grant competitions often ask you to work with a university or hospital, and to pay part of the cost.
- Keep ownership of your intellectual property clear, especially if it started in a university.
Sources
- GOV.UK: R&D tax relief: the merged scheme and enhanced R&D intensive support (updated 8 January 2026) · checked 10 October 2026
Facts about each route are sourced on its own page.