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Venture Capital Activity in the UK

by Jonathan Parker

  • 12 Oct 2012
  • PE

With economic growth stalling, governments around the world are trying to promote development through entrepreneurship. New businesses tend to require financing, and this is a role often filled by venture capitalists.

In the year to date, there have been 276 venture capital financings in the UK, which is already significantly higher than the full year figures for 2009 and 2011, which both saw around 230 financings. The number of deals in 2012 will very likely surpass the 280 financings seen in 2010. In quarterly terms, Q2 2012 saw the highest number of financings of any quarter in the period 2009-2012. Only three other quarters have surpassed the 70 deals mark: Q1 2010 and Q1 2012, each with 89 financings, and Q3 2012, which saw 75 deals.

The aggregate value of UK venture capital financings in the first three quarters of 2012 was $1.42bn, higher than the $0.85bn, $1.25bn, and $1.33bn seen in the first three quarters of 2009, 2010 and 2011, respectively. However, the aggregate value of UK venture capital financings dropped significantly from $565mn in Q2 2012 to $358mn in Q3 2012.

Venture capital deals in the UK have accounted for 6.9% of the global number of deals in the year to date, which is higher than any other year in the period 2009-2012. However, the aggregate value of UK venture capital financings represent 4.8% of the global aggregate value of venture capital deals in 2012 to date, lower than the 4.9% it represented in 2010.

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