Epidarex, an Edinburgh-based specialist life science venture capital group, is unveiling a new £47.5m ($79.5m) fund dedicated to British startups and spin-outs. Besides Epidarex Capital, the fund’s investors also include King’s College London, Glasgow University, Edinburgh University and Aberdeen University. Other backers are US drug company Eli Lilly, the EU’s European Investment Fund, Scottish Enterprise and Strathclyde Pension Fund.
The fund, which is falling just short of its £50m ($84m) target set out in January, was originally launched by Epidarex under its previous company name, Rock Spring Ventures. Created in response to an identified need for more sector-specific financial backing, Epidarex is hoping to help address the lack of venture funding by becoming a “local champion” for the life science sector.
The investment is Eli Lilly’s first in a UK venture capital fund, and underlines the growing confidence of investors in Britain’s biotech industry. The industry has been struggling to attract capital since the financial crisis of 2008, but has been recovering increasingly, celebrating the successful stock market debut of cat allergy company Circassia earlier this year. The company raised £200m ($335m) in what is thought to be London’s biggest ever biotech float.
Kyp Sirinakis, co-manager of the fund, said: “The incredible strength of the research base across the UK, and in Scotland in particular, makes it a natural location for us. We believe early-stage life science and health technology companies in Scotland and the rest of the UK offer the potential for strong financial returns to our investors. We also believe that what we are now setting in motion will, in time, play an important part in further developing the commercial potential of early-stage life sciences research across the UK.”
