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Report: Investment in UK startups falls by largest amount in five years

startup

Investment in UK startups has fallen by the largest amount in five years, with annual deal numbers for 2016 decreasing by 18% since 2015. The total amount invested also fell by 12% to £3.6bn.

That’s according to a report by Beauhurst, which has recorded all equity investment into UK startups in 2016.

Toby Austin, CEO and co-founder of Beauhurst, commented: “A year ago we predicted that 2016’s investment numbers would be flat on 2015’s. At the time, we thought that was a pessimistic outlook. It looks like we weren’t pessimistic enough.”

“The Deal” report also discovered crowdfunding suffered an overall decline of 14%, with 301 crowd investments completed in 2016. However, crowdfunding at the growth stage increased by 10%, with 80% of these companies crowdfunding for the first time, showing that this alternative funding route is emerging as a means for scaleups....

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