TLDR:
- UK saw a 77% increase in VC funding for pharma and biotech sectors in first half of 2024
- Lab and office demand likely to increase as a result
In the first half of 2024, the United Kingdom experienced a significant 77 percent year-on-year jump in venture capital funding for the pharmaceutical and biotech sectors, according to Knight Frank. This increase is expected to boost demand for lab and office spaces in the country. The UK now holds a 5 percent global market share for pharma and biotech venture capital funding, ranking behind only the United States and China in attracting global venture capital. The country is also the top target for pharma and biotech venture capital funding in Europe, surpassing Switzerland, France, and Germany.
The life sciences sector in the UK was the third largest sector in terms of venture capital deal value in the second quarter, following the software and financial services sectors. Although venture capital funding for pharma and biotech companies slightly decreased by 3 percent quarter-on-quarter, the industry still attracted substantial funding totaling £559 million (€664 million/$720 million).
This surge in VC funding highlights the growing importance and attractiveness of the UK’s life sciences sector, positioning the country as a key player in the global biotech and pharma landscape. With increased funding and demand for lab and office spaces, the UK’s life sciences real estate market is set for a significant boost in the coming years.
