Life sciences-focused venture capital firm Epidarex Capital has hit a £102m final close for its third fund.
Epidarex Capital III UK will focus on building new life science companies based on world-class research and innovation from emerging hubs across the UK, including spinouts from highly regarded universities, the firm said.
Typical initial investments will range from £2m to £5m.
The new Fund has been cornerstoned by the British Business Bank through a £50m commitment from its Enterprise Capital Funds programme for early stage venture capital.
BBB’s investment in Epidarex Capital III UK makes it the largest ECF to date, and the first to specialise in life science.
The Universities of Edinburgh, Manchester, Glasgow and Aberdeen, alongside Strathclyde Pension Fund and several global investors also committed capital to the new Fund.
Sinclair Dunlop, managing partner at Epidarex, said, “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.
“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, which received £2.65m in a Series A financing round.
Lunac is developing next-generation anticoagulants to minimise bleeding risk and capitalises on a decade of academic research, which was supported by the university.
Ken Cooper, managing director for venture capital solutions at the British Business Bank, said, “We know that equity finance is crucial for innovative life science and health technology businesses.
“The Bank’s Enterprise Capital Funds programme is a key tool in helping to develop and maintain an effective venture capital provision in the UK.”
Epidarex, which was known as Rock Spring Ventures until 2014, closed its Fund II on £47.5m the same year.
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