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Finance, tax and investment
The BIA campaigns for finance, tax and investment policies to support UK bioscience companies to start and scale up.
The Finance and Tax Advisory Committee (FTAC) leads the BIA’s policy development, drawing on the expertise and experience of the membership. Our strong links to the Treasury, HMRC and the Department for Business, Energy and Industrial Strategy (BEIS) ensure that the voice of the bioscience sector is heard at the highest levels. FTAC also provides finance and tax support for BIA members through events and guidance documents.
The UK is the European leader in bioscience investment and is in a strong position to close the gap on the leading life sciences clusters in Boston and San Francisco and achieve the BIA's vision of becoming the world's third-largest global biotech cluster. The BIA works with the investment community to raise the profile of UK bioscience. We publish quarterly and annual reports on the levels of investment in the sector which you can see below.
UK Biotech financing Q3 2023 report
This quarter stands out as the strongest period since the historical highs of 2021, representing an impressive 48% increase from the previous quarter’s takings. At the current rate, the UK life sciences sector is on track to exceed last year’s total fundraisings.
Despite the continuing global economic malaise, the UK biotech sector managed to maintain a consistent quarter-on-quarter increase this year. Although public market launches remain challenging, biotechs made a strong comeback on follow-on fundraisings accumulating £315 million following a sluggish first half of the year. Venture capital fundraisings didn’t experience the same acceleration, totalling £249 million, which is a fairly typical sum seen in more recent years.
Internationally, the biotech sector has seen steady growth in attracting capital, securing £10.9 billion worldwide this quarter – a 24% increase since the beginning of this year. European and Asian countries saw a strong recovery. The former doubled the funds raised last quarter. Meanwhile, the US, while maintaining its dominant position in attracting the majority of funding, saw a 21% decrease across all fundraisings.
Quarterly biotech financing updates
This quarter stands out as the strongest period since the historical highs of 2021, representing an impressive 48% increase from the previous quarter’s takings. At the current rate, the UK life sciences sector is on track to exceed last year’s total fundraisings.
Despite the continuing global economic malaise, the UK biotech sector managed to maintain a consistent quarter-on-quarter increase this year. Although public market launches remain challenging, biotechs made a strong comeback on follow-on fundraisings accumulating £315 million following a sluggish first half of the year. Venture capital fundraisings didn’t experience the same acceleration, totalling £249 million, which is a fairly typical sum seen in more recent years.
Read UK biotech finacing 2023 q2
The majority of financings, amounting to £338 million, were venture capital investments as confidence continues to grow, particularly in early-stage deals. However, the public markets remain challenging for UK biotechs, with no new market launches and lacklustre follow-ons. This is in line with international trends for public and private biotechs, resulting in an overall global decline in fundraising compared to the first quarter. Despite macroeconomic conditions, the UK biotech sector has demonstrated positive momentum and stability in attracting capital, which will be enhanced by recent UK Government policy initiatives.
Read UK biotech financing 2023 Q1
The year got off to a slow start with only £295 million raised by UK-based innovative life sciences and biotech companies in the three months leading to the end of February, compared to £485 million in the same period a year earlier.
The UK biotech sector has continued to attract investment despite global economic headwinds impacting all sectors. The new data on equity investment in the UK biotech and life sciences sector between March and May 2022 shows £450 million was raised.
With a total of £1.5 billion for the first three quarters of 2022, UK-based biotechs are on track for their fourth best year, ever. Venture financings are holding up by historical standards but have progressively reduced quarter on quarter throughout the year. The public markets continue to confound, however, with no new listings but some large follow-on financings on NASDAQ, raising the overall quarterly takings from all sources to £578 million. This is the best quarter of 2022.
UK biotech companies continued to enjoy strong support from venture capital investors in the first quarter of 2022 with £453 million was raised, marking a record first quarter for private biotechs in the UK.
Annual biotech financing updates
UK Biotech Financing Report 2021
2021 was the highest year on record for investments into UK biotech and life sciences companies. £4.5 billion was raised in public and private financings, £1.7 billion (60%) more than in 2020.
The science of success: UK Biotech Financing in 2020
UK biotech companies raised a record £2.8 billion in equity finance in 2020. The science of success: UK biotech in 2020, marks the best year for biotech investments ever recorded by the trade association and shows that since 2012 investment has increased by over 1000%.