The universities of Edinburgh, Manchester, Glasgow and Aberdeen have all contributed to Epidarex’s latest fund, which will invest in life sciences spinouts.

UK-based venture capital firm Epidarex Capital today closed a fund of more than £102m ($127m) to invest in life sciences companies, including spinouts, across the UK.
The capital was supplied by the universities of Aberdeen, Edinburgh, Glasgow and Manchester, as well as government-owned British Business Bank, which made a $62m cornerstone investment through its Enterprise Capital Funds program, and pension scheme Strathclyde Pension Fund.
A range of undisclosed, international backers have also invested in the fund.
Epidarex Capital III will maintain the firm’s focus on the life sciences sector, targeting spinouts and companies from established and emerging research hubs. It plans to make typical initial commitments of $2.5m to $6.2m.
The fund has already made its first investment, co-leading a $3.5m series A round for Lunac Therapeutics, a UK-based anticoagulant drug discovery spinout of University of Leeds, in November 2019. The round was co-led by the university itself.
Founded in 2012 as Rock Spring Ventures, Epidarex Capital acts as a founding investor and partners researchers to launch life sciences businesses. It is particularly interested in under-ventured ecosystems.
The firm’s headquarters are in Edinburgh, Scotland, though the firm also maintains a US office in Bethesda, Maryland. To date, Epidarex’s 540-strong portfolio has attracted more than £1.36bn ($1.69bn at current exchange rates) altogether.
Sinclair Dunlop, managing partner at Epidarex, said: “We are grateful for the tremendous support from British Business Bank and from returning investors, which has allowed us to close this significant new UK fund.
“Epidarex’s differentiated approach to life science investing draws from our global network of experts and long-standing relationships with multiple highly regarded universities and research institutions.
“Epidarex can now significantly expand and support its portfolio of UK life science start-ups with the potential to both transform patient outcomes and generate competitive investor returns.”
The firm closed a $79.5m fund in 2014, with limited partners including the universities of Abderdeen, Edinburgh and Glasgow, as well as King’s College London.
The fund also attracted Strathclyde Pension Fund, pharmaceutical firm Eli Lilly, the EU-owned European Investment Fund and the state-owned Scottish Enterprise.

Thierry Heles

Thierry Heles is the former editor-at-large of Global University Venturing and Global Corporate Venturing, and was the producer and host of the Beyond the Breakthrough podcast until December 2024.