United Kingdom Biotech Report Finds 29% Uptick in Funding

The United Kingdom Bioindustry Association recently released new data surrounding UK biotech funding in the second quarter. According to the report, venture capital investments rose from £258 million in the first quarter to £338 million in the second, whereas public funding rose from £37 million to £44 million. This represents an overall quarter-over-quarter uptick of 29%, putting it en route to approximately match the £1.21 billion raised over the course of 2022. However, both years totals are set to lag significantly behind 2021, which saw approximately £2.52 billion in total financing.

According to findings from the report, the average size of venture capital investments in the second quarter was £13 million, the same as the first. The report also noted that there was a “healthy spread” of funding between early- and late-stage companies.

The report summary stated that public markets remain challenging, with no new market launches or lackluster follow-on funding, a trend noted as in-line with international trends; no UK biotech company raised money via initial public offering (IPO) in this quarter, mirroring the first quarter. This is in stark contrast to 2021, which saw approximately $1.3 billion raised via IPO over the course of the year. However, due to the positive momentum of the quarter and overall stability in attracting capital, as well as upcoming UK government policy initiatives set to bolster funding, the overall findings were deemed positive by the members of the UK Bioindustry Association.

“Amidst the current challenges facing the UK’s biotech sector, we are encouraged by the 29% growth in investment quarter-on-quarter, and the positive policy progress from UK Government that bodes well for a rapid rebound.” said Steve Bates, CEO, Bioindustry Association, in the report.

The summarized findings of the report can be read here.

Source: UK Bioindustry Association