Q1 UK equity investment slows, but deal-size grows

Posted on: Tuesday 28 May, 2019

High growth business data platform Beauhurst released its Equity Investment Market Update for Q1 2019 – showing the latest data on equity investment trends in the UK.

Analysing every publicly-announced equity fundraising in the quarter, Beauhurst said that while deals had fallen 17% on Q4 218, funds raised actually rose by 10% to £2.06 billion. “While amounts have been high since 2017, this is the first time Q1 has seen such a high amount”, the report’s authors said.

“Only 25% of deals were below £500k. This is the lowest share ever, compared with a high of 51% in Q2 2014. The quarter saw a record median deal size of £1.5m, up from a low of £0.48m in Q2 2014. No sector saw a record number of deals, although FinTech set a record amount invested of £948m.”

“Deal numbers fell at the seed, venture and growth stages, and remained level at the established stage. The amount invested at the growth stage remained high, with the other stages of evolution staying in line with historical figures.

The seed-stage numbers are a cause for concern: there were only 142 announced seed deals this quarter (compared to the record of 209 in Q2/16). Since late 2017 the number of seed deals has been converging with the number of venture deals. This will be storing up a problem for the future: if the earliest-stage business doesn’t get funded now, there’ll be fewer growth deals to be done in the future.

Written By: James Ashwood | Tuesday 28 May, 2019

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