The Finance and Tax Advisory Committee (FTAC) leads the BIA’s policy development, drawing on the expertise and experience of the membership. Our strong links to the Treasury, HMRC and the Department for Business, Energy and Industrial Strategy (BEIS) ensure that the voice of the bioscience sector is heard at the highest levels. FTAC also provides finance and tax support for BIA members through events and guidance documents.
The UK is the European leader in bioscience investment and is in a strong position to close the gap on the leading life sciences clusters in Boston and San Francisco and achieve the BIA's vision of becoming the world's third-largest global biotech cluster. The BIA works with the investment community to raise the profile of UK bioscience. We publish quarterly and annual reports on the levels of investment in the sector which you can see below.
UK biotech financing in 2023
Despite the global economic downturn, UK life sciences companies secured £1.25 billion in venture financing, constituting 11% of the total venture capital investment in UK companies this year. This share has been maintained even amid the decline in investment from the remarkable highs of 2021, suggesting that the decline in investment is likely due to economic conditions and global events rather than industry-specific reasons. The sector therefore remains an attractive and reliable destination for venture capital investments.
The UK upheld its position as Europe’s leading biotech hub, contributing to 41% of the total venture capital raised across the continent. European countries experienced only a slight dip in venture funding compared to the previous year whereas US companies suffered the biggest fall in takings at -39%.
UK biotech financing 2023
The Finance and Tax Advisory Committee (FTAC)
The BIA Finance and Tax Advisory Committee (FTAC) guides the BIA’s work, and advocates for its members, in shaping, influencing and enhancing the financial environment for innovative life sciences and biotech companies in the UK. The committee is the forum where BIA members can directly input into policy development and interactions with the Government on finance and tax matters.
FTAC Priorities
1. Influence
1. Influence and shape government policy on tax and finance matters to provide the support necessary for our membership and wider industry sector
We will do this by driving and influencing legislative change to protect the sector by:
- Supporting and influencing the Scale-Up Taskforce recommendations
- Addressing HMRC consultations and continue proactive advocacy for our sector
2. Expert advice
2. Assist with improving the attractiveness of UK biotech companies to investors
Building the funding story for our members by:
- Providing and interpreting meaningful data – capital investment, investment in R&D
- Identifying ways to engage further with the investment community
We will pro-actively engage with HM Treasury/HMRC on anticipated tax changes, particularly capital gains tax and the implementation of the PAYE cap, to ensure the BIA is first in the conversation. We will follow the National Security and Investment Bill and inform the BIA’s representations to Government. We will work with the British Business Bank and Office for Life Sciences, and other partners and stakeholders, to identify actions that could increase the availability of finance for our sector.
3. Support
3. Continuing to be a sustainable impactful committee, providing a valuable resource for BIA members on finance and tax matters
Supporting our members:
- Supporting the wider membership base: education; information – webinars, guidance notes
- Explore more informal communication channels to support development of wider network participation
- Identify ways of supporting the next generation of finance leaders
FTAC Chair and Vice-Chair
Colin Hailey
Colin worked in the tax departments of both Arthur Andersen and Deloitte in London and Cambridge, UK. He left the Big Four professional services world behind in 2010 to start a new tax firm, Confluence Tax, where biotech and technology clients' needs could be met in a tailored way, while retaining an exemplary level of tax advice.
Twelve years on, Confluence Tax remains the top tax advisory firm for biotechnology and technology clients, having established extensive networks within the life sciences sector, and having built a reputation as the go-to firm. He specialises in venture capital schemes, R&D tax credits, patent box, share incentives and M&A transactions within biotech and tech. He chairs the Finance and Tax Advisory Committee of the BIA and undertakes consultation work with HM Treasury and HMRC. Colin is a regular speaker and contributor on tax issues relevant to the knowledge economy.
Melissa Strange
Melissa Strange is CFO at Brainomix, an AI-powered MedTech, where she leads finance, HR and operations and is helping to guide the Company’s future direction.
Melissa has spent 14 years working in life sciences, helping companies such as Summit Therapeutics, a NASDAQ listed biotech, Closed Loop Medicine, a TechBio developing combination prescription drug plus software products and Kuano, who are seeking to redefine drug discovery with Quantum and AI.
With experience in corporate and commercial transactions, as well as wider organizational development and operational capabilities, Melissa has been actively involved in raising over £120M through UK and US private and public financings and helped secure ~£67M in non-dilutive funding.
FTAC members
FTAC will seek to have a membership of approximately 30 member organisation representatives from across the BIA community, including SMEs and large companies, finance and investor institutions and advisory firms. FTAC members will be expected to attend the four quarterly meetings and encouraged to also participate between meetings.
Quarterly UK biotech financing updates
2023 Q3
Quarterly UK biotech finance update: June - August 2023
This quarter stands out as the strongest period since the historical highs of 2021, representing an impressive 48% increase from the previous quarter’s takings. At the current rate, the UK life sciences sector is on track to exceed last year’s total fundraisings.
Despite the continuing global economic malaise, the UK biotech sector managed to maintain a consistent quarter-on-quarter increase this year. Although public market launches remain challenging, biotechs made a strong comeback on follow-on fundraisings accumulating £315 million following a sluggish first half of the year. Venture capital fundraisings didn’t experience the same acceleration, totalling £249 million, which is a fairly typical sum seen in more recent years.
2023 Q2
Quarterly UK biotech finance update: March - May 2023
The majority of financings, amounting to £338 million, were venture capital investments as confidence continues to grow, particularly in early-stage deals. However, the public markets remain challenging for UK biotechs, with no new market launches and lacklustre follow-ons.
This is in line with international trends for public and private biotechs, resulting in an overall global decline in fundraising compared to the first quarter. Despite macroeconomic conditions, the UK biotech sector has demonstrated positive momentum and stability in attracting capital.
2023 Q1
Quarterly UK biotech finance update: December 2022 - February 2023
The year got off to a slow start with only £295 million raised by UK-based innovative life sciences and biotech companies in the three months leading to the end of February, compared to £485 million in the same period a year earlier.
2022 Q3
Quarterly UK biotech finance update: June - August 2022
With a total of £1.5 billion for the first three quarters of 2022, UK-based biotechs are on track for their fourth best year, ever. Venture financings are holding up by historical standards but have progressively reduced quarter on quarter throughout the year. The public markets continue to confound, however, with no new listings but some large follow-on financings on NASDAQ, raising the overall quarterly takings from all sources to £578 million. This is the best quarter of 2022.
2022 Q2
Quarterly UK biotech finance update: March - May 2022
The UK biotech sector has continued to attract investment despite global economic headwinds impacting all sectors. The new data on equity investment in the UK biotech and life sciences sector between March and May 2022 shows £450 million was raised.
2022 Q1
Quarterly UK biotech finance update: December 2021 - February 2022
UK biotech companies continued to enjoy strong support from venture capital investors in the first quarter of 2022 with £453 million was raised, marking a record first quarter for private biotechs in the UK.
Annual UK biotech financing updates
2023
UK biotech financing in 2023
Despite the global economic downturn, UK life sciences companies secured £1.25 billion in venture financing, constituting 11% of the total venture capital investment in UK companies this year. This share has been maintained even amid the decline in investment from the remarkable highs of 2021, suggesting that the decline in investment is likely due to economic conditions and global events rather than industry-specific reasons. The sector therefore remains an attractive and reliable destination for venture capital investments.
2022
UK biotech financing in 2022
The UK’s innovative life sciences and biotech sector secured its fifth best fundraising year ever in 2022, with £1,785 million raised by UK-headquartered public and private companies across the year. While positive, this overall figure masks a mixed picture for the sector.
2021
UK biotech financing in 2021
2021 was the highest year on record for investments into UK biotech and life sciences companies. £4.5 billion was raised in public and private financings, £1.7 billion (60%) more than in 2020.
