Life sciences companies are leveraging the latest innovations to provide healthcare solutions for patients and the industry. This article will explore some of the most innovative startup companies in the life sciences sphere to watch in 2025 and over the coming years.
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The Startup Boom in Life Sciences
The life sciences sector is known for innovative approaches to critical health issues, with many established multinational companies committing billions of dollars annually to research and development. Some of the largest companies in the life sciences industry include Moderna, AstraZeneca, Novo Nordisk A/S, and Regeneron Pharmaceuticals.1
These companies produce some of the most commonly used pharmaceuticals and medical products for a wide range of medical conditions, including cancer, genetic conditions, and rare diseases. However, whilst the success stories of these major life sciences companies are well-publicized, some of the most exciting innovations currently are coming from startups in the life sciences field.
The wider life sciences industry has seen a rise in venture funding, with an increase in the UK, for example, of 36% year-on-year in 2024. This growth has been accelerated by increased late- and growth-stage round funding.
UK funding of the life sciences industry was worth just under £3bn ($3.87 billion.)2 UK-based startups have benefitted from this funding increase despite the challenges they face.
Global funding for life sciences startups has had a transformative impact on the development of new and innovative technologies and therapeutics. According to Seedtable3, 164 startups in the industry have received an aggregate funding of $11.8 billion.
On average, each company has received $171.7 million. As 2025 progresses, the startup boom in the life sciences sector will likely continue apace.
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Main Life Sciences Startups Areas
The life sciences industry covers many aspects of healthcare. This includes drug discovery, data analytics and services, bioinformatics, oncology, genetic engineering, medical equipment, and biotechnology.
Life sciences startup companies are innovating areas of drug discovery, medical equipment development, bioinformatics, and novel pharmaceutical solutions. Moreover, they are leveraging emerging technologies such as artificial intelligence, robotics, and lab automation.
Some startups are also providing innovative and forward-thinking solutions for the wider life sciences industry, such as lab management platforms, scalable quality management systems, cybersecurity, onboarding, fraud, and risk profiling insurance.
In short, startups are offering a plethora of innovative solutions to help the biotech and life sciences industry overcome multiple challenges in 2025.3
Startup Spotlights
Strateos is a company based in Menlo Park, California. This company provides robotic solutions for life sciences laboratories and has thus far raised $100.4 million in funding for its software-as-a-service offerings to the industry.
Strateos offers solutions such as cloud lab automation services, providing benefits for areas such as drug discovery and synthetic biology and helping pharma and biotech companies, academia, and other startups. The company’s clients and partners include Sutter Health, the University of California San Fransisco, and Ginkgo Bioworks.3
Hinge Health3 is providing a world-first digital clinic for patients with chronic joint and back pain. The company’s platform helps connect users with care, allowing them to access virtual physical therapy from the comfort of homes. Additionally, Hinge provides an FDA-approved wearable device to help alleviate pain for patients.
Palvella Therapeutics, Inc. are a startup dedicated to developing new therapies for rare genetic skin diseases, a historically underserved patient cohort in biopharma research that typically has no FDA-approved therapies.3
Founded in 2015, the company offers the QTORINTM platform for patients. This drug delivery platform overcomes challenges such as delivering appropriate and effective, chemically stable drug concentrations whilst minimizing absorption into the patient’s system. QTORINTM is applied topically rather than orally.
The company’s website states that this platform could revolutionize treatment for patients with rare, medically underserved genetic skin conditions.
Aspect Biosystems is a Canadian biotechnology company working in the area of 3D bioprinting. The company develops 3D-printed implantable tissue therapeutics that replace, repair or supplement the body’s biological functions, providing therapeutic solutions for typically hard-to-treat diseases and helping to accelerate the emerging field of regenerative medicine.3
Qualifyze offers life sciences supply chain risk management. Bioz has launched an AI-powered search engine for the life sciences industry, leveraging the power of big data. Other startups to watch include Artios Pharma, Incline Therapeutics, and Amunix Pharmaceuticals.
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Trends in Funding and Incubation
Funding and incubators are essential for the life sciences industry. Incubators are crucial for fostering innovation in companies that are starting, allowing them to secure funding. Companies must have sound business plans, strong leadership, and compelling products if they are to secure necessary financing successfully.
CBRE have released a report on this key area of the life sciences startup cycle, with 18 incubators in the US surveyed. 78% of respondents indicated that they expect to increase the size of their services to startups in the next decade, compared to 65% in 2024, reflecting strong growth in this area.
However, some challenges could fundamentally change the landscape for both incubators and startups. Mainly, geopolitical issues such as the US government’s freeze on some grant funding are proving to be a potential roadblock to future progress in this area. Another challenge identified by CBRE is a lack of fee and real estate strategy for incubators.4
As mentioned earlier in this article, startups have benefitted from a share of £3 billion worth of venture funding in the UK, and the UK government has announced £13.9 billion of R&D funding, with the life sciences sector specifically mentioned as one target area.5 Whilst the geopolitical situation is uncertain, this reflects the recognition of the life sciences industry’s vital contribution to the world economy.
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Why These Companies Matter
Innovation is key to overcoming the challenges of a rapidly evolving world. The life sciences industry has fostered innovation and embraced the latest technologies to provide health solutions for some of the most complex and challenging medical conditions, improving the quality of life for billions worldwide.
Life sciences startups matter because they bring new ideas to the table, helping to develop drugs for historically underserved rare diseases and embracing emerging technologies such as AI, machine learning, and 3D bioprinting.
Startups such as the ones highlighted in this article provide dynamic, forward-thinking solutions that overcome the historical challenges of the life sciences industry.
However, for these ventures to be successful, they must continue to innovate and look for new solutions. Additionally, funding is essential, and multiple stakeholders such as governments, venture capital companies, and incubators must fully support and make available resources to ensure continued progress in the life sciences industry in a rapidly changing world.
References
- Reiff, N (2024) 10 Biggest Biotechnology Companies [online] Investopedia. Available at: https://www.investopedia.com/articles/markets/122215/worlds-top-10-biotechnology-companies-jnj-rogvx.asp (Accessed on 04 April 2025)
- White, M & Burke, P (2025) The outlook for healthtech and life sciences in 2025 [online] Pharphorum. Available at: https://pharmaphorum.com/market-access/outlook-healthtech-and-life-sciences-2025 (Accessed on 04 April 2025)
- Seedtable (2025) 69 Best Life Sciences Startups to Watch in 2025 [online] Available at: https://www.seedtable.com/best-life-science-startups (Accessed on 04 April 2025)
- CBRE (2025) 2025 U.S. Life Sciences Incubator Survey [online] Available at: https://www.cbre.com/insights/reports/2025-us-life-sciences-incubator-survey (Accessed on 04 April 2025)
- Department for Science, Innovation and Technology (2025) Record £13.9 billion of R&D funding unveiled to boost innovation, jobs and growth [online] Gov.uk. Available at: https://www.gov.uk/government/news/record-139-billion-of-rd-funding-unveiled-to-boost-innovation-jobs-and-growth (Accessed on 04 April 2025)
Further Reading