Investors exit well from Cambridge Cluster

Companies in the ‘Cambridge Cluster’ have made provided investors with some of the strongest exits, however there is concern that the area might be stalling, a new report suggests.

A report, released by Library House, entitled ‘The Supercluster Question’ examines businesses in the London, Cambridge, Oxford and Reading areas where the majority of the UK’s venture capital investment is made.

They found that there has been an abundance of strong exits by investors in the zone -totalling more than £1bn.

The report also confirms that Cambridge-based technology companies have weathered an overall downturn in investment better than the UK as a whole and the rest of Europe.

In the last 18 months, 12 of the Cluster’s companies have listed on public markets and a further 24 have been sold or merged with other businesses, generating over £1bn of value for shareholders and management teams.

Doug Richard, chairman of Library House, said: “The Cluster has continued to evolve and mature over the past few years.

“There have been an encouraging number of exits. In addition, more companies are choosing to access alternative sources of investment such as angel groups.

“Whatever the shape or source of investment, the Cluster continues to prove that the quality of its companies produces a superior return on investment and that it is a good model for other aspiring technology centres throughout Europe to emulate.”

However, there are concerns that the growth of the Cluster has stalled, as Library House reveals that there has been a 1.5% decrease in the number of companies that they track.

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The report’s authors call for ‘far-sighted infrastructure development’ to ensure that growth continues in the area and the Cluster turns into a ‘Supercluster’.

© Crimson Business Ltd 2006


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