Key takeaways from Beauhurst's Equity Investment Market H1 2023 update


1. Headline funding figures: H1 2023 saw a decline in equity fundraisings, with 1,094 deals announced, down 12% from the previous half. Deal value decreased by 15% to £5.94b, compared to £6.9b in H2 2022 and a significant 77.8% drop since H1 2021 (£13.5b).

2. Stages of evolution: The Growth stage experienced the largest fall in investment, declining 125% from H1 2022 to £1.68b. The Seed stage also saw a decline in the number of deals closed (38.3%).

3. Regional trends: The proportion of deals going to London-based companies decreased by 14.4% from H1 2022, allowing other regions to benefit from increased equity investment.

4. First-time fundraisings: The number of first-time rounds decreased by 30.1% from H1 2022, with the amount invested falling by 59% to £604m.

5. Deal sizes: Megadeals and gigadeals decreased, but Q2 2023 showed an increase in both categories compared to Q1 2023.

6. Investor types: Private equity and venture capital firms remained the most active investors, participating in 40.3% of all announced deals. Crowdfunding platforms saw a smaller decline and showed potential for first-time and Seed stage rounds.

7. Sectors: The artificial intelligence sector remained the most popular tech vertical, while cleantech held its position as the second most popular sector. Fintech deals decreased by 54.8% from H1 2022.

8. Biggest deals: Notable deals included Howden Group Holdings (£1.17b), Raylo (£110m), Ascend Gene & Cell Therapies (£105m), and Quantexa (£104m).

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