Venture Capital Activity in the UK, 2008 – 2013 YTD - August 2013

by Gemma Morris

  • 29 Aug 2013
  • PE

Preqin’s Venture Deals Analyst shows that in the UK, 1,796 venture capital deals were announced between 2008 and today, collectively reaching a value of €7.2bn.

2012 witnessed the highest number and aggregate value of venture capital deals in the UK since 2008. A total of 388 venture capital financings valued at a total of just over €1.5bn were completed in the country, representing a 49% increase in terms of number of deals and a 25% rise in terms of aggregate value of deals on the previous year’s figures, when 260 financings were valued at an aggregate €1.2bn. During Q4 2012, the highest aggregate quarterly number of venture capital deals since 2008; this quarterly figure was also matched in Q2 2013. The largest financing recorded during 2012 was the £76.3mn financing of clean technology company Tamar Energy Limited.

Throughout the timeframe, the year 2008 was the second highest in terms of the number of deals and deal value, with 320 deals reaching nearly €1.5bn for the year. The initial quarter of 2008 held the highest level of quarterly aggregate deal value in the time period, at €515mn.  During this quarter, the largest deal was the $100mn series C financing of SpinVox  with Blue Mountain Capital Management, GLG Partners,  Goldman Sachs and Toscafund Asset Management participating.

Activity in 2009 slowed, with a 40% drop in aggregate deal value on the previous year, to only €898mn, a figure that has almost been reached for 2013 so far (€855mn).  From 2009 to 2010, there was an improvement in activity; 2010 witnessed 314 deals at an aggregate value of nearly €1.3bn, a rise of 21% and 39% respectively in comparison to 2009. From 2010 to 2011, Preqin’s data showed a slight drop in aggregate deal value to €1.2bn; however deal flow dropped more significantly from 314 deals to 260 deals, the same number as those recorded in 2009. This reflects the difference in average deal value, recorded as €4.8mn in 2010, but €1mn higher in 2011, at €5.8mn.

As previously mentioned, the aggregate deal value in 2013 is currently €855mn. This value is lower in comparison to this time last year, where deal value had reached €972mn. However in relation to deal flow, Preqin’s Venture Deals Analyst shows that there have been 254 announced venture capital financings in the UK this year so far, higher than the figure of 250 at the same stage the previous year. The largest deal so far this year that Preqin’s data shows is the £75mn financing of international mobile phone network Truphone.

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