We are seeing death rates and cases decrease and vaccination distribution increases, but does this mean that we are at the tail end of the pandemic? 

Well we all hope so; one of the trends that we have seen in these uncertain times is certain industries coming through this stronger, and biotech companies seem to have a tail wind. 

The SPDR S&P Biotech ETF is making fresh highs; investors have been reading their old biology textbooks and realise the importance of science on both the economy and society. 2020 was a marquee year for biotech fundraising. The total capital raised by the global biotech sector in 2020 raised almost $134bn.*

In line with the historical trends, in 2020, UK biotechs attracted the most attention from the venture capital community.

There are a number of key trends which are supporting the sector in the UK:

  • The UK biotech sector holds many of the solutions to today’s most urgent global challenges.
  • Biotech has received strong government support and with record levels of private and public investment over the last decade, the sector’s position as a key strategic sector is only set to continue after the COVID-19 pandemic.
  • Large, multinational pharmaceutical firms that distribute most medicines across the globe are developing fewer new drugs in-house –  making them eager buyers of biotech assets.

The UK Biotech cluster is the third largest in the world, driven by research and innovation the returns for investors are outperforming the tech sector over the long term.  In the UK, we have world-leading universities and research facilities.

Early stage biotechs and emerging pharma companies, who are at the forefront of innovation and technology, are especially in need of funding to strategically drive the future of their assets and company.

As a result, deal evaluation has never been more important when looking at the investment opportunities. Since its inception, the o2h group has developed a rigorous process to evaluate its deal flow, particularly regards seed investments. Opportunities come from a wide range of sources, as a result of the o2h group’s extensive network of contacts. These are quickly filtered using defined criteria. The evaluation committee will undertake thorough due diligence, utilising the support of network experts, where necessary. This process will include detailed assessment of the target validation/rationale, assets and their protection, team, business plan, risks and mitigation strategies and route to market/exit. The team will also speak to potential licensers/end users to ensure the business strategy is attractive for their needs.

We have access to some of the most interesting scientific ideas and talent in the UK., achieving a clearly differentiated position through its live working relationships, fostered over many years, working as a discovery services company. This potentially gives o2h Ventures earlier access than competitors to some of the most promising companies.

The business model we’ve developed provides an edge both in terms of access to opportunities as well as an understanding of the post investment support to nurture and grow during incubation. By combining these, we are providing a unique opportunity, reducing investment risk through our support mechanisms. The team believes that this will increase the Fund’s prospects to achieve successful exits.

Early stage biotechs and emerging pharma companies, who are at the forefront of innovation and technology, are especially in need of funding to strategically drive the future of their assets and company.

For more information on our open investments check the website www.o2hventures.com

*BioWorld.com. 2020. COVID-19 Therapeutics And Vaccines Available And In Development. [online] Available at: https://www.bioworld.com/topics/84-bioworld

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