7 Years of 30% Growth for Investors in UK Early-Stage Equities

Exclusive research from online investment platform SyndicateRoom has revealed that investors in early-stage equities have enjoyed a seventh consecutive year of 30% growth.

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While the UK continues to be heralded as the world’s fintech capital as financial services enjoyed the highest rate of growth (63% compound annual growth rate, CAGR), three of 2017’s top exits from a cohort of 676 businesses which received equity investment in 2011 are life-science businesses with the highest-valued exit being life-science company NuCana (NASDAQ: NCNA) at £504,663,323 valuation and 84% CAGR.

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Overall, 18% of the cohort is made up of businesses operating within the life sciences segment, and these exhibit a CAGR of 34% versus 30% CAGR for the entire cohort.

CAGR
Plotting the trajectory. “While CAGRs for most of the sectors range from 6%(education and ‘other’) to 34% (life sciences), financial services distinguishes itself with an impressive compound annual growth rate of 64% – more than double the 30% CAGR average for the entire cohort.”(Source: SyndicateRoom)

It may come as a bit of surprise, researchers said, since high early-stage costs and long lead times can put investors off investing in life sciences; even the ‘Facebook’s of the medtech and biotech world can take decades, rather than the more usual three to seven years, to get to a multi-billion-pound valuation.

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Gonçalo de Vasconcelos, Co-Founder and CEO of SyndicateRoom commented:

I was delighted to see another stable year of 30% valuation growth for the companies. That’s blisteringly fast growth for any asset class and what’s even more impressive is that it has sustained this level of value appreciation for seven years running. Let’s see if cryptocurrencies can rival that in a few years’ time!

Find out more here.