Very interesting data on the UK tech VC scene from our friends at Ascendant. Although the number of deals in Q1 2011 slumped by a third to 42, the aggregate value invested soared by 44% to £221m. The largest deal was £73m invested in web-based money lender, Wonga, which helped put the Internet/Wireless sector at the head of the rankings.
Software start-ups received £30m in the quarter and Cleantech, almost nada. Ascendant CEO, Stuart McKnight noted that although the Cleantech bubble appears to have burst, he expects to see new deals in the sector this quarter. Also notable was that London VCs accounted for 60% of the quarter's investment, the highest that Ascendant has ever recorded. Normally London represents around 45% of the total.
We’ll have more on the UK software and IT services VC scene in the next edition of TechMarketView IndustryViews Private Equity.