KPMG Private Enterprise – global Venture Pulse report Q1 2021
Venture capital investment in UK scale-up businesses reached record levels in the first three months of 2021, as investors looked to deploy a significant amount of dry powder in late stage deals. Our first Venture Pulse report of the year recorded more than £5.1bn of VC investment into fast growth UK businesses in Q1’21, up on the previous high of £3.9bn raised in Q4’20. Despite the challenging economic conditions, fast growth businesses in the UK attracted nearly double the £2.7bn raised in the same quarter last year. Read the full global Venture Pulse report here.
UK Q1 2021 highlights
- More than £5.1bn invested in first 3 months of 2021
- UK maintains European crown representing 7 of 10 largest deals in the region
- Investment in fintech accelerates – as UK looks to maintain global competitiveness
What to watch for next quarter
VC investment is expected to remain robust globally heading into Q2’21, particularly in sectors like fintech and B2B services. Artificial intelligence, robotics, and blockchain related solutions – including non-fungible tokens, are also expected to be priorities for VC investors.
Exit activity is expected to remain very strong. SPAC mergers will likely continue to gain steam as an option for companies to go public in key regions during Q2’21, although whether they will be a hot trend long term will likely depend on the performance of announced SPAC mergers over the next few quarters.