A new report has found that the UK life sciences sector attracted £10.6 billion in corporate investment during the first quarter of 2021. According to the report from Savills, Perkins&Will and Blackstock Consulting, this is over half of the record £20 billion raised in the whole of 2020.
The report, entitled Life Sciences Innovation: Building the Fourth Industrial Revolution, also revealed that around £9 billion of the total for Q1 was in funding for pharmaceutical or biotechnology sub-sectors.
Funding for UK life sciences reached a record with last year’s almost £20 billion in corporate investment (the fourth highest amount worldwide), with increased interest spurred on by the COVID-19 pandemic, and this trend looks set to accelerate further in 2021.
Q1 2021 also saw £1 billion in venture capital funding for UK life sciences companies. Across the entirety of 2020, venture capital funding for UK life sciences firms was £2.4 billion.
Savills Director of Commercial Research Steven Lang commented: “The scale of capital raising by UK life sciences companies during the past year is staggering and shows that the adage of ‘follow the money’ is particularly true when it comes to the life sciences sector.”
“An analysis of the flow of capital raising provides a clear indication of the potential scale of corporate and sector growth in the UK, illustrates the geographical distribution of ‘hotspots’, and shows where strengthening markets exist or are strongly emerging, including the development of the ‘Northern Arc’ in the UK.”