Is Brexit pouring cold water on startup companies?
A UK Equity Investment Market Update for Quarter 1, 2019 – indicates there could be a problem with seed funding deals – there were fewer seed deals and a smaller portion of deals of under £500k.
“Deals under £500k typically involve individuals rather than institutions, and people can more easily adjust their investing practices to reflect their sentiment about the market.”
“Deals under £500k represent a lower proportion of the activity in the market than ever before."
Deal sizes are growing with more mega deals, but if companies are starved of seed funding there will be fewer companies out there for the larger investors to invest in.
Could this be a Brexit effect?
All quotes from Beauhurst blog: Equity Investment Market Update: Q1 2019
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