UK and US venture firm Epidarex Capital announced first close fund of $145M to build life sciences start-ups

According to the press release, the new fund, Epidarex Capital IV, LP, will focus on breakthrough academic and translational research for the creation of therapeutics and medical device companies. “Epidarex Capital IV, LP is expected to invest in up to 15 companies,” reads today’s announcement.

Building companies from early science

The first close of Epidarex Capital IV, LP is backed by a mix of new and existing institutional investors, including the British Business Bank, the Scottish National Investment Bank and Strathclyde Pension Fund, alongside international family offices and corporates.

Epidarex team focuses on creating healthcare companies targeting significant unmet medical needs, particularly in areas such as oncology, cardiometabolic disease, autoimmunity and neurology. “We believe that the next three years represent a highly attractive window for investing in a new wave of biotech innovation,” stated Sinclair Dunlop, Managing Partner at Epidarex.

Epidarex’s portfolio includes Apellis Pharmaceuticals, a Massachusetts-based biotech, which last year received EMA and  FDA approval for pegcetacoplan (branded as Aspaveli in Europe and as Empaveli in the US) for the treatment of C3G and primary IC-MPGN, two rare kidney diseases with a high risk of kidney failure.

Other companies backed by Epidarex are UK-based Enterprise Therapeutics in Brighton and Kynos Therapeutics in Edinburgh, as well as US companies Harpoon Medical in Maryland and Nodthera in Massachusetts. Each of these companies originated from leading research centres in the UK or US. Collectively, these companies reflect Epidarex’s focus on building next-generation healthcare ventures around novel science addressing significant unmet medical needs.

Bridging the early-stage funding gap

Beyond the fundraise itself, the Epidarex announcement highlights several broader trends shaping the European and transatlantic life sciences ecosystem. Early-stage company creation has regained strategic importance as large pharmaceutical companies increasingly look externally for innovation.

Academic labs in the UK and Europe continue to generate world-class science, but translating those discoveries into venture-backed companies remains challenging. The Managing Director and Co-Head of Funds at the British Business Bank, Christine Hockley, said in the press release: “The UK has a very strong science and research base, so what is needed is investors who specialise in nurturing and scaling those ideas, creating new, IP-rich companies.”

Epidarex’s latest fund suggests confidence that the coming years will offer attractive entry points for building new life science companies. This optimistic stance contrasts sharply with recent moves by Belgian investment firm Gimv, which announced it will no longer pursue new life sciences deals after 45 years in the sector. Gimv is shifting focus toward areas with clearer paths to scale and faster value creation, such as digital health services, consumer platforms, and sustainable industries. More traditional or listed investment companies like Gimv are prioritizing predictability and operational leverage over long, high-risk development timelines.

But if Epidarex’s strategy is successful, such efforts could play a meaningful role in turning Europe’s strong research base into globally competitive life science companies and, ultimately, new medicines for patients.