Epidarex Capital closes life sciences venture fund at £102m

Epidarex Capital has closed a new fund destined to help build successful new life sciences companies in the UK at £102 million.

The Epidarex Capital III UK LP fund will build new life science companies "based on world-class research and innovation from emerging hubs across the UK, including spinouts from highly regarded universities".

Typical initial investments will range from £2 million to £5 million, the group said.

The new Fund is supported by the British Business Bank via a £50 million commitment from its Enterprise Capital Funds (ECF) programme for early stage venture capital.

In addition, the Universities of Edinburgh, Manchester, Glasgow and Aberdeen, alongside Strathclyde Pension Fund and several global investors have committed capital to the new 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,” said managing partner at the firm Sinclair Dunlop.

“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 Fund’s first investment founded Lunac Therapeutics, a spinout from the University of Leeds developing next-generation anticoagulants to minimise bleeding risk, which received £2.65 million in a Series A financing round.

The Fund expects to announce several further investments in the coming months.

Steve Bates, OBE, chief executive of the UK BioIndustry Association (BIA), said: “It’s fantastic to see UK life science industrial strategy in action – further enabling Epidarex to back some of Britain’s most promising life science entrepreneurs.

“Having transatlantic expertise and a base in Edinburgh, gives Epidarex real insight in building new UK life science companies, including beyond the South East of England – an area that has traditionally been under ventured despite the presence of world-leading research and innovation.”