According to recent research, the UK’s start-up and scale-up businesses raised £4.5 billion over 889 deals in the first half of 2019, which is 15 per cent more money than in any equivalent period before.
This suggests that Brexit fears aside, 2019 will see more money raised by start-up and scale-up businesses than in any previous year on record.
The research found that much of the increased investment came from a sharp rise in the number of seed-stage companies successfully attracting investment, which is the first time this sector of the market has seen improvements since the beginning of 2017.
This seven per cent increase in seed-stage funding bodes well for the early-stage sector as a whole, as investors now appear to be willing to back even the riskiest end of the market.
Elsewhere, there was also a 14 per cent increase in the number of growth-stage deals, with the average business in this sector attracting funding of £21 million, up from £16 million previously. These mega deals now seem to have become a permanent feature of the funding landscape, and growth funding stands at an all-time high.
According to the research, the year’s record fundraising was mainly due to global interest in the UK’s technology businesses and, in particular, those involved in artificial intelligence (AI). These businesses saw a 15 per cent increase in the number of deals since the second half of last year.
Moreover, AdTech businesses were increasingly popular, as there was a 14 per cent increase in deal numbers during the first six months of this year, which was the first such increase since the first half of 2016.
Jon Stocker, General Practice Partner at Milsted Langdon, said: “It is promising to see that UK start-ups are receiving more support and funding than ever before.
“If you have a start-up business, and would like further support on how to secure funding for your business, then please get in touch today.”
For more information about how Milsted Langdon can help, please contact Jon at email@example.com or by calling 01935 383500.