Venture capital investment in the UK/Irish ‘Cleantech’ sector bounced back in Q2, according to latest data from Ascendant, though CEO, Stuart McKnight thinks this reinvigoration may not be sustained. McKnight said he was aware of a number of investors no longer looking at Cleantech and noted that funding rounds are extending much longer than other parts of the tech sector.
Ascendant reported a 23% yoy increase in VC investment in UK/Irish tech companies in Q2, to £234m. However, the number of investors was down yoy, from 84 to 70. The software sector attracted 14 investments totalling £45m, third behind Cleantech (£70m) and Internet/Wireless (£60m).
McKnight noted that VC funding was becoming more concentrated in fewer companies as well as observing a general shrinkage in the main body of technology investors.
TechMarketView subscription service clients will be able to see more detail on the UK software and IT services VC/PE scene in the next edition of IndustryViews Private Equity.