The Investor Perception Survey 2018 is now available to download. The report analyses the investment community’s views and expectations of the life sciences sector in Europe. It is based on a survey of 124 investors, as well as more in-depth telephone interviews with 18 VC, CVC, and angel investors. The report aims to help life sciences companies gain a better understanding of the investment community’s priorities, and to enable stakeholders to identify challenges and opportunities within the sector.
One-fifth (20%) of respondents to the 2nd Biotech and Money Investor Perception Survey report an increased focus on life science investment opportunities outside of the UK as a result of the UK’s decision to leave the EU. Although 38% of respondents are not currently seeing Brexit impact their investment strategy and believe that this will continue to be the case, a further 38% of respondents do expect Brexit to affect their investment strategy in the future.
This year’s survey uncovers some worrying perceptions about management teams’ effectiveness and presentation skills. While the strength of the management team is the deciding factor in the investment decisions of 80% of respondents, 59% of respondents consider under one-quarter of the management teams they see to be effective. Furthermore, 85% of respondents feel that under half of the life science management teams they see present well.
Meanwhile, oncology continues to top respondents’ rankings of the therapeutic areas they believe offer the best investment opportunities. Over one-third (37%) of respondents rank oncology as the therapeutic area offering the greatest investment opportunity, and 22% rank it as the therapeutic area providing the second-best investment opportunity. However, investors interviewed for the report also expressed concerns that oncology is becoming an increasingly crowded space, intensifying the need for differentiation. At the same time, CNS/neurology has risen up the rankings, with 17% of respondents identifying it as the therapeutic area offering the best investment opportunity. This puts it in second place behind oncology, up from fourth place in 2017.
Terry O’Dwyer, Co-CEO at Biotech and Money, said: “This survey highlights that investors are both buoyed by the incredible opportunities and technology developing in this sector, but that there remain substantial risks and barriers that are holding back investor confidence. In particular, the need to develop and cultivate strong management teams and to build better bridges with the investment community is paramount.”
Download the full report to read through this year's survey results and learn more about the investment community's expectations for Europe's life sciences sector: