Biotech venture and public financing rose to £382m in the second quarter of 2023, up 29% from £295m in Q1, the UK Bioindustry Association has reported.

The report by the association stated that venture capital investments rose from £258m in Q1 to £338m in Q2, with public funding increasing from £37m to £44m in Q1 and Q2 respectively.

This increase puts the industry on track to match the £1.21bn raised over the course of 2022. However, these figures will lag behind those set in 2021, which saw approximately £2.52bn in total financing.

The report has found that the average size of venture capital investments in Q2 was £13m, matching that of the figure in Q1. Furthermore, there was a “healthy spread” of funding between early- and -late-stage companies.

The report goes on to state that the public markets remain challenging, with no new market launches or lacklustre follow-on funding, a trend noted in line with international trends. It was found that no UK biotech company was able to raise any money via IPOs in the first half of the year. This is in contrast to the $13.bn raised via IPO in 2021.

However, as a result of the positive momentum of Q2 and the overall stability in attracting capital, as well as future Government policy initiatives to bolster funding, the findings were seen as positive bu the UK Bioindustry Association.
Chief executive officer at the UK Bioindustry Association, Steve Bates, said in the report: “Amidst the current challenges facing the UK’s biotech sector, we are encouraged by the 29% growth in investment quarter-on-quarter, and the positive policy progress from UK Government that bodes well for a rapid rebound.”

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