So far, 2017 has proven to be a positive year for British businesses seeking finance from alternative platforms. Last week, KPMG’s quarterly Venture Pulse report demonstrated that investors are positive about the long-term growth prospects of Britain’s thriving private sector. The report found that over £804 million was injected into UK companies over the opening three months of 2017.
Unlike previous quarters, the volume of capital injection into the private sector during Q1 2017 was unique due to the nature of larger, later-stage deals being closed. Aside from the standout performance of the tech industry, Britain’s biotech and life sciences sectors proved to be particularly attractive capital destinations for UK investors.
The strong and consistent flow of venture capital (VC) into British businesses reflects the global surge of investment into the private sector. There has been a 13% increase in global VC investment to $27 billion in the first three months of the year, while investment in Europe in Q1 2017 remained consistent with previous quarters, averaging approximately $3.4 billion.
IW Capital recently asked 1,000 British people, who have between £10,000 and £250,000 worth of investments – excluding properties or pensions – about their investment intentions over the coming 12 months. The results provided valuable insight into the attitudes and sentiments of British investors as they consider the impact of Brexit on their future financial strategies. Specifically, it reiterated the resilient optimism of the investor community, particularly towards investment into private companies.
The research found that nearly half (44%) of UK investors see Brexit as having a positive impact on their financial strategy over the coming 12 months, with an additional 22% stating that Brexit was unlikely to have any foreseeable impact on their investment planning. Looking to the opportunities that Britain’s withdrawal from the EU is likely to deliver, our research found that 13% of investors consider private equity investment into UK businesses as the biggest opportunity in 2017. This figure rose to 23% for those based in London.
This timely report demonstrates that investor sentiment towards Britain’s post-Brexit future is both positive and optimistic. What’s more, the findings of this research were featured in The Independent as one of the lead businesses news stories. You can read the article here.
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