Alexander Mann, an Investor at Concentric, on how the UK can compete with mega investment funds.
The global startup scene is awash with cash, with VCs closing a record 55 rounds of more than $100m in July, amounting to over $15bn in total across the month. But while you might think entrepreneurs will be rubbing their hands together at the prospect of landing one of these so-called ‘mega rounds’, take a closer look and you’ll soon notice that not a single one of these deals happened in the UK or Europe.
Mega rounds have become commonplace in the US and China, due to the growth of ‘mega funds’ – roughly classed as funds of over $5bn. But this side of the pond, these are few and far between. Funds here are gradually getting bigger, with at least one £1bn plus fund announced in recent months. But with just a handful of £100m+ rounds this year so far, we’ve got a long way to go if we want our startups to scale as fast and as far as those in the US and China....