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 2023

Despite the global economic downturn, UK life sciences companies secured £1.25 billion in venture financing, constituting 11% of the total venture capital investment in UK companies this year. This share has been maintained even amid the decline in investment from the remarkable highs of 2021, suggesting that the decline in investment is likely due to economic conditions and global events rather than industry-specific reasons. The sector therefore remains an attractive and reliable destination for venture capital investments.

The UK upheld its position as Europe’s leading biotech hub, contributing to 41% of the total venture capital raised across the continent. European countries experienced only a slight dip in venture funding compared to the previous year whereas US companies suffered the biggest fall in takings at -39%.

 

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Quarterly biotech financing updates

Jun - Aug 2023
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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.

 

Mar - May 2023
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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.

 

Dec 2022–Feb 2023
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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.

 

Mar - May 2022

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.

Jun - Aug 2022

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.

 Dec 2021 - Feb 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

2023
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Despite the global economic downturn, UK life sciences companies secured £1.25 billion in venture financing, constituting 11% of the total venture capital investment in UK companies this year. This share has been maintained even amid the decline in investment from the remarkable highs of 2021, suggesting that the decline in investment is likely due to economic conditions and global events rather than industry-specific reasons. The sector therefore remains an attractive and reliable destination for venture capital investments.

 

2021
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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.

2020
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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%.