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Three biggest barriers facing synbio scaleups today

Three biggest barriers facing synbio scaleups today

Three biggest barriers facing synbio scaleups today

Synthetic biology startups in the UK rarely struggle with ambition. Many begin with strong science, a credible technical idea, and founders who understand the research better than anyone else. The harder part comes later, when the company has to move beyond the lab and prove that it can grow as a business, raise enough money, and access the facilities needed to scale.

That shift can expose three barriers that come up again and again for engineering biology and synthetic biology scaleups: limited business experience in the founding team, the funding gap between early support and venture capital, and the difficulty of accessing specialist scaleup facilities.

Scientific founders are not always company builders

A common starting point is a group of three to five scientists or engineers forming a company around university research, a spinout opportunity or earlier research they believe can be commercialised. In many cases, those founders are excellent technically. What they may not have is practical experience of setting up and growing a company.

That gap matters early. Forming a company can be relatively straightforward, and in the UK there are firms that can help register a limited liability company at Companies House. Running that company well is a different challenge. Founders need business training, legal and financial advice, and people around them who know how startups grow. At some point, many companies will also need a professional CEO with experience building startups and SMEs.

The funding gap arrives before many companies are ready

Stable funding and careful financial planning are central to scaling any company. For synbio startups, the early money may come from family and friends, Innovate UK, or similar sources. This type of funding tends to stop at roughly the £1 million to £1.5 million stage, while conventional venture capital in the UK usually comes in later, beyond about £4 million.

That leaves a difficult stretch in between, often described as the chasm. Companies may need to piece together a mix of funding sources, including specialist funders such as SynBioVen and angels. Good lawyers and accountants are not a luxury in this phase. Poor advice, or no advice, can create problems later, including at exit.

Scaleup facilities are expensive and hard to access

The third barrier is physical infrastructure. Engineering biology and synthetic biology companies often need access to facilities such as biofoundries and precision fermenters. These are expensive, and usually out of reach for early-stage companies to own outright.

For a startup board, planning for this access cannot be left until the last minute. The UK has several public facilities that can provide support at low cost, so part of scaling is knowing where those facilities are, what they can provide and how the company will use them when the time comes.

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A commercial mindset has to come early

There is also a more basic point running through all three barriers. A company exists to create a commercial return. If the real aim is to continue interesting research and development, a university, or research laboratory may be the better place for it. For founders coming out of strong research environments, that distinction can be easy to underestimate.

The startups most likely to move forward are the ones that treat business capability, funding strategy and facility access as core parts of scaleup, rather than issues to solve after the science is proven.

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