Who’s funding what - in UK start-ups and high-growth companies?
Beauhurst have released their free annual investment report ‘The Deal’ 2016 which analyses all equity investment in UK companies from start-ups through to high-growth companies, between 1st January and 31st December 2016.
Their findings are not altogether comforting. We have extracted some headlines and snippets from the report, which makes fascinating reading. You can download the free report by following the link at the bottom of this article.
Life sciences buck the trend
The headline information is that yearly deal numbers fell for the first time in recent memory, by 18% and the total amount invested also fell by 12% from 2015. Across the sectors analysed, which are Seed, Venture and Growth companies, the trend was similar with one notable exception - investment into early-stage life sciences companies bucked the trend and this sector appears to be booming as seed-stage life sciences businesses saw a 19% increase in deals and a record £202m invested. As you might expect Technology businesses accounted for the biggest share of deals, as has been the case for the past 5 years.
Deliveroo take largest pot
There were some unusually large deals. The biggest fundraising went into food delivery company Deliveroo, which secured a colossal £210m, followed by Skyscanner at £128m.
Crowdfunding comes of age
Crowdfunding is emerging as a real alternative at the later stages of growth. Despite an overall decline in crowdfunding deal numbers, crowdfunding at the growth-stage increased 10%, with 80% of these companies crowdfunding for the first time. The top investors were Seedrs and Crowdcube.
Hackney – a London hot spot
In terms of regions, London took half of all fundraisings in 2016. The strongest borough in London by deal numbers was Hackney, with 88 equity investments totalling £153.5m. And Wales and Northern Ireland were exceptions to the general trend, seeing a 30% and 8% increase in deal numbers respectively.
Beauhurst is a platform that lets you access rich information on UK high-growth companies - Click to read headlines and download The Deal 2016 report
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