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They may not be as prolific as they in the US, but the number of ‘super angels’– private investors with very deep pockets – is on the rise in the UK & Ireland tech sector, according to Stuart McKnight, MD of corporate finance form, Ascendant. Indeed, last quarter Ascendant recorded the highest level of private investor involvement in VC-backed tech deals for 15 years – ‘angel’ participation increased to fully one-third of all deals in Q3. And these were not tiny deals, averaging just under £1.8m.
The aggregate value of VC investments in UK/Ireland tech firms fell by 12% compared to the prior quarter, though at £205m, this was around 50% higher than in Q3 2010. At current course and speed, 2011 is likely to be a better year for VC investment than 2010 in terms of funds committed, though deal volumes are likely to be lower. In other words, investors are placing bigger bets on fewer start-ups.
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.
