British Business Bank has invested €25m ($28.6m) into venture capital (VC) firm EQT Life Sciences’ latest life sciences and medtech-dedicated fund.
Launched in 2024 with a fund size now totalling €216m, the EQT Health Economics 3 Fund (EQT HE3) is designed to support commercial-stage companies in Europe developing medical technology and digital health technologies aimed at advancing healthcare delivery. Portfolio companies within the fund include the UK’s Cyted Health and Phagenesis.
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The UK government’s economic development bank’s investment in the Netherlands-based VC’s latest fund follows a €15m investment by Dutch promotional bank Invest-NL in October 2025.
British Business Bank highlighted that its commitment to EQT HE3 represents the latest in its ongoing efforts to support ‘high potential’ UK life sciences companies since the sector represents one of the eight growth areas part of the UK’s Industrial Strategy.
“The UK is home to a world-class life sciences sector, but scaling companies in the sector requires specialist investors,” Christine Hockley, managing director and head of commercial equity funds at British Business Bank, explained.
“By investing in high-quality international funds, we encourage greater investment to flow back into the UK and ensure UK companies benefit from the capital and expertise of leading investors,” Hockley continued.
EQT backs companies in areas including medical devices, health tech, and diagnostics development. With over €3.7bn across 13 private funds raised to date, the European life sciences investor has supported more than 150 companies from early clinical development through to commercialisation. EQT has recently backed companies including Galway, Ireland-headquartered rhinitis specialist Neurent Medical and Dutch insulin pump developer ViCentra.
British Business Bank’s investment builds on its previous work with EQT, having co-invested in the fund’s portfolio companies’ Phagenesis’ $42m Series D financing round in 2023, and Cyted Health’s $44m Series B round in September 2025.
Drew Burdon, partner at EQT Life Sciences, commented: “Over recent years we have built an excellent relationship with the bank through co-investments in leading UK health tech companies. The bank’s investment will further contribute to our commitment to tap into the attractive UK health tech ecosystem and grow strong companies together.”
