Snapshot for week beginning 04 July. For the first time in history, global venture investments broke through the USD100 bn ceiling in Q1 2021.
Venture Capital (VC) investment in UK scaleup businesses reached record levels in the first three months of 2021, as investors looked to deploy a significant amount of dry powder in late-stage deals.
Go deeper with GlobalData
A look at the data from KPMG gives valuable insights into current state of VC funding.
KPMG’s first Venture Pulse report of the year recorded more than £5.1 bn of VC investment into fast growth UK businesses in Q1 21, up 25 % on the previous high of £3.9 bn raised in Q4 20.
Despite the challenging economic conditions, fast growth businesses in the UK attracted nearly double the £2.7 bn raised in the same quarter last year.
UK maintains European crown
Whilst Germany, the Nordics, Spain and Israel also recorded new investment highs, the UK attracted the lion’s share of large deals representing 7 of the 10 largest deals in the region.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataA total of £15.1 bn was raised across Europe in the first quarter of the year, with the UK accounting for over a third.
The UK continues to be the powerhouse of Europe when it comes to attracting investment in fast growth innovative companies.
The fact that the amount of VC investment coming into the UK from overseas increased in this post-Brexit environment is encouraging, as was the continued strength of Corporate VC investment.
The UK continues to be an attractive investment destination, particularly for US and Asian VC investors who have a strong appetite for our fast growth, innovative businesses.
Deal of the week: Peace Tech Lab secures USD20.49m in venture funding
Peace Tech Lab Co., Ltd, a Japan-based loan and borrowing application for goods, has secured JPY2.27bn (USD20.49m) in venture funding from HTG Co., Ltd, SMBC Venture Capital, SBI Investment, SBS Holdings, Coro Planet, Shinsei Bank, Chibagin Capital, DBJ Capital, Nomura Real Estate Holdings, Fuji Startup Ventures, Vector and Mori Trust.
Deal Rationale: Peace Tech Lab intends to use the funds to further expand services such as marketing and promotion activities, product development, and strengthening of the organizational structure.
Investment in FinTech accelerates
Interest and valuations for FinTech businesses continued to accelerate in Q1 21, with UK FinTechs raising £1.9 bn in VC investment. Three UK based FinTechs raised large rounds, including LendInvest (£275 m), Checkout.com (£325 m), and Rapyd (£217 m).
The UK will remain strong for FinTech given its forward-thinking approach to regulation, UK-wide expertise and pool of talent.
With the outcome of equivalence decisions with the EU yet to be decided it’s important that the Financial Services sector continues to be outward looking, making our markets more efficient, and competitive, including embracing the new digital capital markets and currencies.
B2B services is a fast-growing area of VC investment both for VC and CVC investors.
Growing numbers of FinTechs are focusing on B2B services –offering everything from financial tools for SMEs to solutions focused on enhancing cash flow or managing accounting requirements.
Given the number of local and global financial institutions looking to improve their legacy tech and infrastructure, it is likely that there will continue to be significant investments in this space as we go through 2021.
