New figures show that UK start-ups and scale-ups raised over £4.5billion in the first half of 2019.
The stats from Beauhurst show that the first half of 2019 saw the second highest amount of investment in SMEs on record. The amount invested in equity deals grew 15% from the second half of last year to £4.5billion, with the number of deals rising by 10% to 889. These statistics show the confidence in small businesses looking to grow and scale, despite uncertainty around Brexit and the future Prime Minister.
H1 2019 was the best first half on record, with a 15% increase in the total amount of investment received by the UK’s startups and scaleups.
The number of deals rose 10% since the previous half, and the majority of the increase was at the seed-stage.
There was also a 17% increase in the number of growth stage deals and their average size rose from £16m to £17m.
FinTech saw more money invested than in any other half, and has already beaten figures for the whole of 2018. AI was the only sector to achieve a record number of deals.
Luke Davis – CEO and founder of SME investment house IW Capital – comments on the figures and why growing SMEs are key to the UK economy:
“The statistics released yesterday may come as a surprise given the uncertainty that exists in both continued Brexit negotiations and leadership elections. However, in the small business community this is supportive of the sentiment that we have seen over the past year or so. Our investor base is as keen as ever before to fund the fantastic range of innovative small businesses that the UK has to offer. And in terms of the desire to grow and raise funds as a business; we have seen record deal-flow and ambition as firms look to get on with business.
One of the most encouraging parts of the report is the bounce-back of the number of seed stage deals, after a dip in 2018 it shows real confidence in what can be the most rewarding area of investment. Alongside this, growth-stage deals reached an all-time high, demonstrating the desire to expand and take advantage of opportunities that exist for entrepreneurs and innovators. Small businesses are more able to pivot and adapt to the changes that Brexit could bring about with opportunities undoubtedly existing.”