Life science incubator BioCity, has released its biennial publication, the UK Life Science Start-Up Report, documenting an unprecedented period of growth for life sciences across the UK.
SAMUEL KIRBY
The report has collected, analysed and interpreted data for nearly a decade and a half.
This is thanks in part to a change in the funding landscape, expressed in a four-fold increase to £2.8 billion of investment in early-stage ventures, compared to the previous five-year period.
Authored by BioCity chairman and former CEO, Dr Glenn Crocker MBE, the report looks at the prevalence of life science start-ups in the UK over the past five years and the broader landscape in which they operate to also asses the quality of UK life science start-ups. By analysing the number of start-ups by region, area of scientific focus, funding, investment and university association, the report creates a broad picture of the current health and future of, the industry.
Multiple factors are highlighted as driving expansion, but of greatest impact was the emergence of a number of significant venture funds able and willing to make very large investments in early stage businesses.
Also identified as a contributing factor is the increasing use of smaller companies and academia as sources of innovation by large pharmaceuticals aiming to counteract falling R&D productivity. The report documents a rise in the number of global players establishing or sponsoring accelerators and incubators and making investments through their corporate venturing arms.
Simultaneously, universities such as Bristol, Newcastle and Aberdeen introduced a gear change in spin-out formation, while a supportive local public sector reinforced the growth.
Dr Glenn Crocker said: “Both the number of companies starting up and the amount invested in them has taken off. We have seen a 50% increase in the number of companies and a four-fold increase in investment going into them; this will likely result in a substantial increase in the demand for space. We estimate that this cohort of businesses alone could require 1.4 million sq ft of specialist facilities over the next five years. One consequence of this demand growth is that real estate investors are being increasingly attracted to the sector.”
The findings of the BioCity UK Life Science Start-Up Report will be discussed in full by Dr Crocker during a key-note speech to an invited audience of industry figures at a launch event at MediCity Nottingham on Tuesday 26 November 2019.