Britain has the potential to be a global leader in the biotech market as a key source of funding, corporate venture capital (CVC) investment, grew six-fold between 2010 and 2015.
Through CVC, pharma companies can invest their own funds in developing startups.
A report that was published by the Association of the British Pharmaceutical Industry (ABPI) discovered that in recent years, there has been a huge increase in CVC investment in biotech in the United Kingdom, transforming the way that the startups are funded.
The amount of capital that is invested alongside CVC into companies in the United Kingdom rose from an average of $105m per year between 2008 and 2010 to $647m in 2015, an increase of more than six-fold. Around 60 percent of financing rounds in 2016 included the CVC.
The head of health data and outcomes at ABPI, Shahid Hanif, said that the United Kingdom is an attractive destination for investment in biotech and that it has a strong reputation in life sciences as a “global centre of scientific excellence,” second to the United States.
Hanif stated: “Compared with the rest of Europe, CVC investors view the UK as offering better access to experienced senior management as well as to specialist drug discovery and development experts, thanks to the historic presence and links with large pharma companies.
“The UK has the potential to become a global leader in the biotech market with CVC investment as a critical form of funding to enable new startups to emerge and develop.”