UK investment trends. – Sologub
What technological verticals should you look for when looking for investments in England?
Despite the general decline in investment in the UK by 20%, there are segments in the country that are attractive to investors. Consider the brightest of them.
This segment was not interesting to English investors for many years. Investments in startups in this industry rarely accounted for more than a quarter of a billion dollars. However, in 2019 the situation changed dramatically, and the amount of invested funds exceeded $5 billion (22 times more than a year earlier), which brought this segment to the top ten segments in terms of the number of Investments.
Cybersecurity startups have been known for a long time in the country: with an interval of 3–4 years, investors become active and increase the number of invested amounts by several times. This was observed in 2008, 2012, 2016, as well as in 2019, which closed with an amount of $4.6 billion (9.3-fold increase). This year, most likely, there will be a recession, but, as the practice of past cycles shows, the volumes will be at the level of $500M.
Fintech grew by 50% and became the first segment in terms of sales, repeating the global growth trend with an increase of $14.8 billion.
Predicting the trend of the current year will be more difficult due to the fact that the industry is still on its way to becoming, and also because the invested funds are mainly circulating. We will monitor changes in the industry in order to promptly inform our customers and partners.
The most active stage in this segment is Merger/Acquisition, which has been growing for the third year in a row. In 2019, the segment grew 2.5 times — by $22.6 billion (a year earlier the growth was 430% $11.9 billion in money).
Increased interest is also observed in the Later stage VC, showing a 2.2-fold increase.
I would also like to note an increase in the number of grants by 66.5 times: up to $240 million.
Look more about UK investment market here (google sheet)