Attracting US investors: what UK life science companies need to know 

Securing US investment is often a necessary step for UK life science and technology companies looking to scale, especially when clinical development costs are high and growth ambitions are global.

But gaining traction with American investors involves more than just a compelling scientific case. 

At a recent CXO event at the Royal Society of Medicine, a panel of experts shared practical insights on how UK companies can better position themselves to attract US funding. 

Structure matters 

One of the most common hurdles? Company structure. US investors typically prefer to work within familiar legal and regulatory frameworks. As panellist Malcolm Joy explained, “US investors need and expect to see company structures that they are familiar with.” 

Enter the Delaware Flip, a restructuring process that places a US-based parent company at the top of a UK firm’s corporate hierarchy. While not a trivial undertaking, the Delaware Flip helps address investor concerns around tax, reporting, and governance. It’s a standard approach for many growth-stage firms and signals commitment to operating within the US system. 

“US investors need and expect to see company structures that they are familiar with.” 

Presence builds confidence 

A legal entity in the US is only part of the story. Investors also want to see operational activity, whether that’s boots on the ground, C-suite presence, or robust financial reporting aligned with US norms. As the report notes, “a US investor needs to see US-style financial reporting, a US establishment and at least one C-suite level leader (often the CFO) located in the USA before investment.” 

Having US-based non-executive directors and even a US chairperson can also go a long way in demonstrating credibility and readiness. 

Tailor the pitch 

Beyond structure and presence, companies must understand the differences in investor expectations. While UK life science firms may lead with science and data, US investors also look for a clear commercial pathway and market positioning. The panel emphasized that early preparation is essential, both to meet investor standards and to compete in a crowded funding landscape. 

Final thoughts 

The appetite for UK life science investment in the US remains strong, but competition is fierce, and standards are high. As one panellist put it, “The fundamentals of attracting such investment require substantial planning and effort.” 

With the right structure, team, and strategy, UK companies can open the door to significant US capital, but they must be prepared to think and operate like a US business to win investor confidence. 

“The fundamentals of attracting such investment require substantial planning and effort.” 

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