UK Life Sciences and Innovation activity: Q2 2023 insights
UK government funding package sees investment rise 144% in Q2 as golden triangle take-up continues to rise.
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It was a quarter that saw the highest level of UK life sciences VC funding since Q3 2021.
Take-up of science-related space across the golden triangle was 125% above the five-year average and the government launched its £650m package of "Life Sci for Growth" measures, sending a clear message that the life sciences sector is a dynamo for UK economic growth.
Headlines for Q2 2023 include:
- Q2 2023 UK life sciences venture capital funding reached £1.3bn, a 144% increase quarter-on-quarter and a 38% increase year-on-year. This can be partly attributed to a record £602m fundraise.
- The UK government made another pro-science announcement, with a £650m package to support the ambition to make the UK a science superpower.
- New data found that Oxford University, Cambridge University, Imperial College London, UCL and Manchester University topped the ranking of Universities by number of spin-outs.
- The Medicines Manufacturing Industry Partnership forecasts the creation of an additional 116,000 UK-based medicine manufacturing jobs over the next decade if the UK takes specific steps to become a global leader in this field.
- While significant equity is still allocated to life sciences real estate strategies, the market has not been immune to current economic pressures. As a result, Q2 2023 life sciences investment volumes for the golden triangle fell to £56.75m across three deals.
- Q2 take-up of science-related space in the golden triangle totalled 314,325 sq. ft. - an increase of 20% compared to the same quarter in 2022 and 125% above the five-year average. Oxford accounted for 52% of this activity, with take-up boosted by Moderna pre-letting 145,000 sq. ft. at Harwell Campus.