UK Biotech Experiences Strong Start to 2021 Fundraising

March 30, 2021
BioPharm International Editors

BIA and Clarivate have released data showing that UK biotech companies are set to experience another strong year for fundraising in 2021.

According to data from the UK BioIndustry Association (BIA) and Clarivate, biotech companies in the United Kingdom are set to experience another strong year for fundraising in 2021. The news was announced in a March 29, 2021 press release.

So far, the data have shown that over £830 million (US $1.14 billion) in fresh capital was raised in the three months to the end of February 2021. Other highlights from the data were an increase in £123 million (US $169 million) of venture capital raised in the period between December 2020 and February 2021 compared with the same period in the previous year, initial public offerings were up with £215 million (US $296 million) raised, and follow-on financings were up to £279 million (US $385 million).

“This strong start to 2021, with investments outpacing the record setting year of 2020, shows the incredible appetite amongst international and some domestic investors for the UK’s world leading biotech and life sciences companies,” said Steve Bates, CEO of BIA, in the press release. “This has been reinforced by the recent announcement that £1 billion [US $1.4 billion] will be invested in the sector through a UAE-UK Sovereign Investment Partnership. This quarter has also seen significant private sector investments into UK medicine manufacturing capability and clinical development pipelines, which has fueled increased confidence in the sectors outlook for 2021.”

“In the three months to 28 February [2021], the global biotech sector has maintained the momentum of last year’s record-breaking financial activity,” added Mike Ward, global head of Thought Leadership at Clarivate, in the press release. “According to data collected and curated by BioWorld, biotechs across the world raised almost £26.7 billion [US $36.8 billion], more than double the amount raised in the same period a year earlier. It is clear that investor appetite for the sector has not been satiated.”

Source: BIA