Investment in UK high-growth businesses jumps by £351m in May

Investment total hits £941m in May, though deal volume has decreased significantly from 379 to 202 between April and May and from 470 in March

The UK’s high-growth businesses raised an “unusually high” total of £941m in May, according to the latest monthly report from Beauhurst – the online resource for information on high-growth UK companies.

The figure was an increase of £351m on the £590m secured by UK companies in April, while the average deal size for May was £4.95m, with an average pre-money valuation of £8.25m.

However, deal numbers have continued to plummet throughout the year, dropping from 379 to 202 between April and May, after declining from a peak of 470 in March. For comparison, there were 322 deals completed in the UK during May last year.

In fact, the report said that every May since 2010 has witnessed a significant drop-off in deal volume from the preceding April, which it suggested could be related to lower investment activity at the end of the financial year.

Additionally, lower numbers than the previous month are to be expected because companies that closed deals at the end of May still have a fortnight to file the deal, while, this year, uncertainty surrounding June’s snap general election might also have been a contributing factor.

Crowdfunding has continued to cement its position as a major alternative source of finance for UK high-growth businesses, with Crowdcube responsible for the most funding rounds in May, followed in joint second place by Accelerated Digital Ventures, Mercia Fund Management, Seedrs, and Woodford Investment Management.

Meet the UK companies that managed to raise more than £1m in equity crowdfunding last year.

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