Pharma (pharmaceuticals) falls within the categorisation of life sciences. Pharma companies derive their business from researching, discovering, developing, manufacturing and marketing pharmaceutical medicines and drugs. As with all life sciences, the typical lead time for pharma startups to grow to fruition is likely to be around seven years if not longer, due in large part to the extent of R&D (research and development) necessary, and the risk of investing is comparatively high. These factors are somewhat mitigated by the fact that successful pharma businesses can not only make a significant profit, but also improve people's lives for the better, making this sector attractive to many long-term investors.
According to a recent pharma market research report by The Business Research Company, globally the market was worth around $934.8bn in 2017 and is likely to reach $1.17trln by 2021, growing at 5.8%, per year – an acceleration on previous years, but still shy of the growth rates experienced by the other two large healthcare segments, medical equipment and healthcare.
Why invest in pharma?
Despite a reputation for being high risk, pharma startups can be compelling opportunities for investors not put off by the inherently long lead times. With the possibility of patented entry into new treatments, pharma can offer profitable opportunities for investors who do their research. Particularly pertinent is the stage at which the business reaches clinical trials – often the make-or-break point in the company's development.
If you're an investor who is happy to wait seven-plus years for any return so long as your investment has the potential to improve people's lives for generations to come, pharma might be the sector for you.
Why invest with SyndicateRoom?
SyndicateRoom gives investors access to growing businesses across many different sectors, including pharma. Unlike most investing platforms for startups, which tend to specialise in consumer industries and fund few healthcare businesses, SyndicateRoom has a history of attracting companies from the life sciences – healthcare, medtech, biotech, and pharma.
In 2015, SyndicateRoom was named Europe’s leading online platform for life science investment in a report by Biocom, having funded 16 of the 42 life science projects up to that date. Today, 33% of the businesses that seek funding through our platform fall into this category (2019). This trend is due in large part to the fact that the investors that use SyndicateRoom tend to be hunting for long-term investments with the potential to make a significant difference worldwide – in simple terms, ones that want to make the world a better place.
Some recent pharma startups our members helped fund are Axol Bioscience, specialists in human cell culture providing primary and iPS cells suitable for assays in basic life science research, drug discovery and toxicology assessment; Camallergy, a business developing life-changing treatments for people with food allergies, starting with peanut allergy; and Jupiter Diagnostics, which offers a faster, cheaper way to get blood test results using its portable and easy-to-use point-of-care diagnostic reader.
Our Access EIS fund builds a diversified startup portfolio for you by co-investing with experienced angel investors. It aims to build a portfolio of at least 50 companies for each investor to further mitigate risk, and to replicate annual market growth in the UK startup sector.
What SyndicateRoom offers:
A data-driven approach to venture capital investing that aims to minimise risk.
Access to a larger portion of the startup market through co-investment with experienced business angels.
Generous tax reliefs as part of the EIS scheme for qualifying investors.
Low minimum investment of £5,000.
Pharma investment portfolio
SyndicateRoom is FREE to join
With SyndicateRoom you gain access to invest alongside professional investors receiving the same share class and same share price.