October 21, 2024: The UK biotech sector achieved an impressive £808 million in funding during Q3 2024, successfully navigating challenging global market conditions and showcasing sustained investor confidence. This information comes from the latest report by the BioIndustry Association (BIA).
Venture capital funding remained strong, totaling £536 million across 18 deals, which reflects a 13.8% decrease from Q2. Despite this drop, the figure for the quarter remains above the recent historical average, indicating ongoing investor confidence in the sector over the long term.
Early-stage investments were particularly robust, with Series A rounds raising £193 million from five deals. Notable transactions included Myrick Bio, which secured £90 million in a Series A round, and F2G, which raised £76 million in a Series H round. The number of completed deals underscores the ability of UK biotech companies to attract capital for innovative research and development.
Other key findings from the report include a strong investor appetite for established companies. Despite no IPO activity for the ninth consecutive quarter, total follow-on financing for 2024 reached £1.61 billion, marking the highest total in five years and reflecting a persistent interest in established biotech firms, even in a tough market environment.
On a global scale, venture capital investment in biotech surged to £6.96 billion in Q3 2024, a 90.2% increase compared to the previous year. The US led this growth with £4.54 billion, while the UK emerged as the top performer in Europe, attracting £536 million, followed by Germany at £221 million and Switzerland at £170 million.
In addition to these encouraging financial results, the BIA has been advocating for increased government support for the biotech sector. The association's efforts have emphasised the importance of prioritising innovation and maintaining R&D tax reliefs, which are vital for the industry’s continued growth. BIA's ongoing engagement with the Treasury aims to ensure that life sciences innovation remains a key focus in the government's industrial strategy and upcoming Budget on 30 October.
In the company's press release, Steve Bates OBE, CEO of the BIA, commented, “The resilience of the UK life science sector since the 2021 financing peak is undeniable. It is encouraging to see new companies emerging even in the face of tough conditions. With venture investment still going strong, our data shows the Labour government is right to prioritise a key UK growth sector of the future.
Private investors are realising opportunities that public market data just doesn’t show in UK life science. It’s vital, if we are to get UK pension funds to invest in UK life science, that more data on the actual returns in UK life science from private investment are put in the public domain.”
With strong venture capital activity and a focus on early-stage investments, the sector is well-positioned for future growth. As the government prepares for the upcoming Budget, the emphasis on supporting innovation and maintaining R&D tax reliefs will be crucial for sustaining this momentum and attracting further investment in life sciences.
