venture capital in the uk - barclays corporate capital in the uk ... managing director of barclays...
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Venture capital in the UKIts vital role in driving growth
UK total deal value (2016)
More than 200 UK firms have
had successful exits in the past 10 years
More than 200 UK firms have raised
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Why is venture capital so important to the UK?
Today, venture capital is one of the most important sources of funding in the UK economy.
The countrys productivity has stalled. Between 2007 and 2015, output per hour rose by just 0.7%. That matters: productivity gains are a central driver of economic growth as a whole, so only an economy that is consistently innovating and becoming more efficient can expect to grow in the long run.
At the same time, there has been a shift in where innovations and technological breakthroughs originate. In previous generations, the most consequential innovations tended to come from large, established companies. Today, they are more likely to come from smaller companies and start-ups, and bigger organisations Google, Facebook are now as likely to acquire their innovation as to develop it within their walls. This is happening in part because the technology on which innovation relies is now cheaper and more accessible.
It has never been less expensive to start a software company, explains Will Bowmer, Managing Director of Barclays International, who is based in Silicon Valley. Because of this, the number of start-up ideas that are now viable is amazing and they continue to proliferate.
Early-stage, fast-growth companies rely on venture capital, which gives it an outsized role in enabling the innovation that improves productivity.
Overview of UK VC activity
UK venture capital: an overviewVenture capital is vital to UK economic growth, yet the industry is changing rapidly and faces increased competition from Europe.
Repairing UK productivity and supporting long-term growth therefore needs a thriving venture capital sector. Venture capital is increasingly responsible for the formation of the most exciting and the most disruptive companies that we see in the UK, explains Sean Duffy, Head of Technology, Media and Telecoms at Barclays. Its driving more and more of the growth that we see in the economy.
Deal Values (B)
# of Deals Closed
Source: PitchBook 2016 Annual European Venture Report.
The UKs strong venture capital scene has created a fertile environment for disruptive tech companies.
The UKs strong venture-capital scene has created a fertile environment for disruptive tech companies. Today, it is a world leader in the financial technology (fintech), enterprise technology, e-commerce, property, and travel sectors.
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Selected UK venture capital players
There are a number of VC players in the UK market; this section highlights just a few of those active today.
Dawn Capital seeks to invest in areas of fintech and B2B software. The firm primarily focuses on companies based in the United Kingdom and Europe.Type: Venture capitalSectors: Tech and B2B softwareCurrent Investments: 24 investmentsExits: 10 HQ: London
Type: Seed, early-stage venture, later-stage venture, private equity, debt financing Investment size: 1m25mSectors: Mobile, software, fintech, curated web, healthtech, e-commerce, gaming, Current investment: 203 investments Exits: 4 IPOs, 30 acquisitions HQ: London
The European Investment Fund is a public-private partnership and subsidiary of the European Investment Bank. It is mandated to provide 10bn in financing to high-growth, innovative and inherently risky small and medium-sized enterprises across the EU and associated countries.
The British Business Bank is a government-owned bank, and British Business Bank Investments is its commercial arm.Type: Invests in finance providers such as deb funds, capital funds and challenger banksInvestment size: 5m200mCurrent investment: 0.7bn HQ: Sheffield and London
Type: Venture capital, early-stage start-upsSectors: IT, healthcare, financial servicesCurrent investment: 45 investmentsExits: 17HQ: London
Type: Venture capital focusing on seed and impact investmentsSectors: Impact investing, SaaS, venture capitalCurrent investment: 135 investmentsHQ: London
Type: Impact investing, financeInvestment size: 200,00025mSectors: Mobile, software as a service, security, enterprise software, IT infrastructure, media, healthcare, consumerCurrent investment: 166 investmentsExits: 4 IPOs, 18 acquisitions HQ: London
Type: Seed, early-stage venture, later-stage venture, and private equity investmentsSectors: Consumer internet and mobile, enterprise technologiesCurrent investment: 568 investmentsExits: 14 IPOs & 96 acquisitions HQ: Geneva
Type: Venture capital, seed, early- and growth-stage investmentsSectors: Information technology, cyber security, internet infrastructureCurrent investment: 388 investmentsHQ: California
Type: Banking, finance, venture capitalInvestment size: