6 Facts On UK Crowdfunding in 2017

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Source: Level39.co

The latest analysis of equity investment across the UK by Beauhurst, a leading source of market intelligence on business funding in the UK, shows that 2017 was the best year on record or investment in the UK’s high-growth companies.

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In particular, while more cash has been invested into startups than any time in history (£8.27b), 2017 was a record year for ‘megadeals’ including 29 investments of £50m+. Foreign cash backed 23 of these and is growing faster than domestic investment despite Brexit turmoil.

According to the findings, London took more than half (51%) of all deals for first time ever and FinTech saw the most investment on record as 25% of all megadeals went into FinTech firms and the sector grew by 15% overall.

Henry Whorwood, Senior Consultancy Associate, Beauhurst said:

170605_Beauhurst_Headshots_Henry_Whorwood_033_BW copy.png“The pool of capital available to UK private businesses has deepened significantly. The question now is not so much about making sure that companies have access to enough capital but rather that they have access to the right kind of capital. In 2018 we’ll see a shift away from promoting patient capital to preventing impatient capital.”

Stephen Welton, CEO, BGF commented:

Stephen Welton.png“More and more business owners are recognising that with strong financial backing and genuine support there are as many opportunities as challenges, and that growth is out there. These results demonstrate that entrepreneurialism across the UK is alive and well.”

Want to know about Crowdfunding?

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1. Crowdfunding retained its position in second place as private equity and venture capital funders led the pack.

Deasl By Investor

Deal by Investor Type Over Time. (Source: Beauhurst, 2018)

2. As is becoming the norm, crowdfunding platforms have dominated 2017 by deal numbers.

top investors by deal number

Top Investors by UK Deal Numbers. (Source: Beauhurst, 2018)

3. After a worrying dip last year, activity in the sector has made a recovery especially towards the end of the year.

Crowdfunding trends

Crowdfunding Over 2017. (Source: Beauhurst, 2018)

4.  Crowdcube was the top-ranked platform by amount of investment facilitated, whilst Seedrs participated in more deals.  SyndicateRoom and VentureFounders were involved in deals that were on average larger than those of their more active competitors.

Platforms

Major Crowdfunding Platform, 2017. (Source: Beauhurst, 2018)

5. In Scotland, angel networks continue to shine while crowdfunding has begun to decline in the <£500k bracket as startups can count on diversity of investment sources.

Angels Scotland

Angel Networks and Crowdfunding Deals in Scotland. (Source: Beauhurst, 2018)

6. London boasts more than half of all deals (55%) in the Country.

London

2017 Crowdfunding Deals by Region. (Source: Beauhurst, 2018)

Find out more here.

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