The Launch of Venture Capital News
Venture Capital News is launching to be a source of reference relating to the world of Venture Capital, Crowdfunding and Private Equity in the UK. The site will have a focus on several industry sectors with a strong focus on Fintech.
Venture Capital In the UK
There has been significant growth in the amount of Venture Capital money that has been invested in early stage and growth companies in the UK with investments being heavily focused on Fintech, Healthcare and more recently into AI, Blockchain and Robotics.
The Venture Capitalists have tended to be London based and it has been common to see individuals change the venture capital firms they are employed by as the “unicorn pickers” are in high demand.
Venture Capital Funds in the UK do also tend to be on shore as many have been seeded by UK government funds. This has generally meant a requirement for both the GP and the Fund to be UK domiciled.
Crowdfunding in the UK
Crowdfunding sites have grown in the last 6 or 7 years with the market leaders being Crowdcube and Seedrs who have both successfully raised capital for themselves on their own crowdfunding site.
Investments made via crowdfunding has continued to grow and now as well as the initial small start-ups that were raising crowdfunding equity, there are also offerings of crowdfunding for real estate and other collective investment schemes in sectors that are not typically small amounts or early stage.
Advantages of Crowdfunding
The advantages of crowdfunding to companies is that it opens up a pool of capital that as a crowd becomes relevant and in times of lack of funding by banks or professional investors, the funds from “the crowd” can enable a company to attempt to move from idea to pilot or proof of concept without the due diligence or pressure on valuations that you may expect from non-crowd investors.
The crowdfunding promoters would also suggest that opening up such investment opportunities to the retail public allows the public to have the same opportunities as professional investors to make investments into early stage companies with a level of due diligence carried out by the promoters.
Fintech in the UK
The UK and London has been a hot bed of Fintech in the last 10 years with companies looking to provide solutions using technology and innovation.
Challenger Banks have been a hot sector in the UK over the last 5 years with the growth of businesses such as Monzo, Revolut, Monese and Starling Bank as well as overseas challengers such as N26.
The Challenger Bank have initially been funded in many cases by some of the Venture Capitalist in London such as Passion Capital, Balderton Capital and Accell who have funded early stage and subsequently followed up in many cases.
The UK Government via their investments into the Venture Capital Funds are also significant investors in the FinTech’s.
What is coming up in the Early Stage and Venture Capital Funding Sector
There have been continuous increases in the valuations across most sectors especially in the Challenger Bank sector where the companies are now considered unicorns dispute showing no sign of profitability and continual need to raise finance. This may see changes in the sector as investors get fatigued by waiting for profitability and we may see subsequent down rounds to raise funds.
The valuations of companies that have raised funds via crowdfunding have also increased year on year and we have also seen Venture Capital Funded companies go to the crowd to raise funding rounds with several Venture Capital firms being very supportive of working with Crowdfunding promoters to raise money via retail for their invested companies.
Venture Capital News intends to follow activity across the above sectors and provide regular and meaningful reports and analysis