Record Aggregate Deal Value for UK Venture Capital (as at 28 October 2015) – October 2015

by Adam Jackson

  • 03 Nov 2015
  • PE
  • VC

According to Preqin’s Venture Deals Analyst database, 3,724 venture capital deals have been announced in the UK since 2007, with a collective deal value of over €15bn. The year with the highest number of venture capital deals since 2007 has been 2013, where there were 577 such transactions. Despite this, 2015 YTD holds the record in terms of aggregate deal value since 2007, at €2.9bn, with this figure certain to rise before the end of the year. Preqin data shows that there have only been 321 announced venture capital financings in the UK so far in 2015, considerably lower in comparison to 2014 when there were 553 financings in total. This in turn reflects the difference in average deal value, recorded at €5.5mn in 2014 and almost doubled in 2015 YTD to €10.6mn.

During Q2 2014 the UK witnessed the highest aggregate quarterly number of venture capital deals in the period from 2007 to present, standing at 171 financings valued at an aggregate €625mn. The largest financing in Q2 2014, and 2014 as a whole, was a growth capital/expansion round for music software company, Kobalt Music Group Ltd, in which the company raised $115mn (€85mn). Despite Q2 2014 being the quarter with the largest number of deals, it is Q3 2015 that has the highest quarterly aggregate deal value, standing at €1.3bn. The aggregate deal value of the top five deals in this quarter accounted for 54% of the total quarterly deal value, with a $320mn investment in Immunocore and a $118mn financing of Mereo BioPharma alone accounting for a third of the quarterly total.

The historical data provided on Preqin’s Venture Deals Analyst database shows that  deal activity in 2009 slowed, as expected in the wake of the financial crisis. The aggregate deal value decreased 42% on the previous year to €900mn, a figure that has been already exceeded over three times so far in 2015 YTD. From 2009 to 2010 there was a marked improvement in venture capital deal activity; 2010 witnessed 378 deals at an aggregate value of almost €1.6bn, a rise of 27% and 77% respectively in comparison to 2009. Despite a slight drop in both deal flow and aggregate deal value in the following year, Preqin data shows that both deal flow and aggregate value have been on an upward trend since 2010. 2012 and 2013 both reported aggregate deal values of €1.6bn and a total number of deals of 535 and 577 respectively.

*Figures exclude add-ons, mergers, grants, venture debt and secondary stock purchases.

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