The sector is up by 35% according to Beauhurst's review of 2013, published today.
The rise is heavily attributable to "seed investments" in the most exciting new companies, according to
"This area of backing fast-growing companies has typically been the preserve of a small elite of extremely wealthy "business angels". But with the rapid rise of crowd funding platforms there has been a democratisation of investment, with the public looking to get a stake in a small company on the ground floor with a view to backing a winner" says Bence.
Equity investment is booming
Beauhurst research shows that 2013 was a boom year for investment with over
The angel flies
Much of the growth in equity investment is down to seed-stage investing, which has risen hugely in recent times with the 2013 total exceeding the combined total from 2011 and 2012. This is the typical preserve of the "angel" investor whose interest has been kindled by generous tax breaks and a rise in crowd funding platforms such as CrowdCube that make it easier to access the seed-stage market. Investments concluded via these platforms have increased 8-fold over the past 12 months.
It is oft said that there's no "venture" in "venture capital" and there is certainly a mismatch between the disruptive technologies that have dominated the media (bitcoins and 3D printing particularly come to mind) and the activities of the venture capital community (just a single bitcoin investment and nothing for 3D printing during 2013). This isn't because these areas are pure media hype because there have been plenty of US investments in these areas.
The new equity gap
While early-stage (seed) investing and later-stage (growth) investing are booming, the middle- stage (venture) is losing market share. There is a real risk that this stifles the growth of the promising batch of seed stage companies that will need investment over the coming years. There is a clear need for Government to look at what it can do to stimulate this part of the market.
"2013 was a boom time for high-growth companies seeking equity investment and the early signs in 2014 are that this trend is set to continue. However, while early-stage and late-stage investment is very strong, middle-stage investment is losing ground. This is the traditional†preserve of venture capital investors who are retreating to larger investments risking leaving a substantial equity gap. The Government - whose tax incentives have been instrumental in stimulating early-stage investment - needs to get a grip on this problem rapidly otherwise corporate seedlings risk withering well before maturity."
Beauhurst - formerly UKFunders - was founded in 2010 by Dr
If you'd like to find out more, please take a look at† www.beauhurst.com; call 0800 612 6768; or email† firstname.lastname@example.org
For further comments and interviews please contact:
To view this press release on Presswire.com, please click here.
Most Popular Stories
- Miley Cyrus Performs in Undies After Costume Goes Missing
- FBI Helping Ukraine Recover Stolen Billions
- HBO No Go During 'True Detective' Finale
- Software Writers Sought in Indiana
- Uninsured Rate Continues to Fall
- Colo. Raises $3.5 Million in Pot Revenue
- Kim Jong Un Elected in Remarkable Unanimous Vote
- Neil Young Debuts PonoMusic This Week
- Rodman Calls It Quits With Kim Jong Un
- Growth Expected if Congress Passes Budget