Start-ups are enjoying an increase in financial backing, according to new research claiming investment in UK enterprise is at a record high.
UK enterprise investment hit £63 million last year, investment analysts Venture Index has revealed.
According to the research, early stage investments accounted for 50% of the number of deals completed in this period.
“The latest figures are an encouraging sign that the waning interest in smaller company investment seen in the last quarter was not a permanent trend,” said Peter Claydon, group commercial director of YFM Group, investors in small companies.
“Enthusiasm for smaller investments has markedly increased to a new high, indicating a return to a healthy investment market for the [small business] sector.”
Managing director of Venture Index, Modwenna Rees-Mogg, echoes view that the results were encouraging for small firms:
“Analysis of the deals suggests that investors are once again keen to invest in small and start up companies. Risk capital is critical to smaller company growth, so whilst it is very encouraging to see such an increase in investment, it is essential that this is maintained in order to ensure the future buoyancy of the [small business] segment.”
Rees-Mogg said the results showed that angel or venture capital backed deals were more balanced across the UK than many people think, and it is not just London and the South East that secures investment.
© Crimson Business Ltd. 2007