South scale-ups continue to attract considerable investment in Q2

News Posted 05/08/21
Businesses in the South attracted £1,432m in Venture Capital (VC) investment in Q2 of 2021, according to KPMG UK’s Global Venture Pulse Survey.

It was raised across 89 deals in the region, representing 12% of all UK deals by volume during the quarter, and 15% of all UK deal value.

Sami Fairris, corporate finance director at KPMG in the South East, said: “As the second-highest recipient of investment in both deal count and value, the South has shown once again the strength of its homegrown firms to investors looking for ambitious businesses to support on their growth journey. 

“The success of the last quarter is a testament in particular to the resilience of companies across the region, and their ability to innovate and adapt to the needs of the market.

“As always, management teams with the combination of a compelling business plan and this flexibility will be best-positioned to attract the funding needed to drive further growth.”

The KPMG survey found that Global VC investors continue to deploy record amounts of money into UK scale-ups, with nearly £17bn raised in the first half of 2021, surpassing the total sum raised in the whole of last year.

The Venture Pulse report, using data supplied by PitchBook, found that more than £6.5bn was invested into fast-growth UK businesses during Q2, with 708 deals completed, up 7% on the previous quarter.

Bina Mehta, chair of KPMG UK and head of the firm’s UK Emerging Giants Centre of Excellence, added: “The UK has demonstrated resilience and adaptability in attracting overseas investment in a post-Covid, post-Brexit era, which is likely due in part to the maturity of our scale-up ecosystem. 

“The power of our disruptive businesses to deliver impact on a global scale is more important than it’s ever been, and our UK innovators are a real success story.  

“VC investors, particularly from Asia and the US, continue to be attracted by the strength of our businesses and diversity of our UK scale-up ecosystems across the UK. 

“This quarter, we have seen big investments made to fast-growth businesses not only in London but in Cambridge, the Midlands and the South East of England.

“Whilst it is our established late-stage businesses that are attracting the big investment, Angel investors and university incubators are playing an increasing role in developing strong and active programmes in the regions, which attribute to our diversity and growing number of disruptive scale-up businesses.

“It is great to see that early-stage businesses are starting to attract the funding they need in order to scale. Supporting them will be crucial in order to continue to develop our ecosystem and maintain our global position as leaders in innovation.”

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