The UK could become a global leader in biotech as a key source of funding increased six-fold over five years

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Biotech could be a growing industry in Britain (Source: Getty)

Britain has the potential to become a global leader in the biotech market as corporate venture capital (CVC) investment, a key source of funding, increased six-fold between 2010 and 2015.

Through CVC, pharma companies invest their own funds in emerging startups. 

A report by the Association of the British Pharmaceutical Industry (ABPI) found that in recent years, there's been huge growth in CVC investment in UK biotech, transforming the way the startups are funded.

Read more: The Gates Foundation is investing $40m in a UK biotech firm

The amount of capital invested alongside CVC into UK companies increased from an average $105m per year between 2008 and 2010 to $647m in 2015, a more than six-fold increase. About 60 per cent of financing rounds in 2016 included CVC.

Shahid Hanif, the head of health data and outcomes at ABPI, said the UK is an attractive destination for investment in biotech and has a strong reputation in life sciences as a "global centre of scientific excellence", second only to the US, and 

Hanif said: 

Compared with the rest of Europe, CVC investors view the UK as offering better access to experienced senior management as well as to specialist drug discovery and development experts, thanks to the historic presence and links with large pharma companies.

The UK has the potential to become a global leader in the biotech market with CVC investment as a critical form of funding to enable new startups to emerge and develop.

Read more: Artificial intelligence meets genome editing in £1.5m funding round