How do we judge the health of the UK’s high-growth economy? By looking at equity fundraising activity across the country, we’re able to see the emerging trends and patterns from the perspective of investors and the businesses themselves.
Our latest edition of The Deal looks at all equity investment secured in 2017, from venture capital to AI tech startups, to growth capital helping manufacturers expand their operations.
The key points:
The most cash ever invested
More than twice as much cash has gone into high-growth firms than in 2016, with £8.27b invested.
The year of the megadeal
29 ‘megadeals’ of £50m+ were seen – four times as many as last year
25% of megadeals go to fintech
A quarter of all megadeals went into fintech firms, and the sector grew by 15% (20 deals) overall
Backed by foreign money
Investment from outside the UK played a part in 23 of the 29 megadeals, and is growing rapidly
Larger deals, fewer exits
IPOs are a way of raising capital, but bigger deals lower demand for that cash: 2017 saw just 9 exits
London takes the lion’s share
72% of megadeals went into the capital, which also took more than half of all deals for the first time