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Funding roundup: October equity fundraising statistics

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In our recording of October equity fundraising statistics 115 investments into 115 high-growth companies were recorded.

Breaking this down further, the total amount invested was £400m (an average of £3.67m per company). Furthermore, 28 of these (24 per cent) were unannounced, meaning that only Beauhurst private research uncovered them.

The average pre-money valuation of companies funded in this October equity fundraising statistics analysis was £7.77m, and the top three sectors invested into were as follows:

  1. Technology and IP-based businesses: 42.8 per cent
  2. Business and professional services: 24.6 per cent
  3. Industrials: 12.2 per cent

Here are the October equity fundraising statistics compared to those from the previous month.

Metric                                                                                           September                                   October

Number of fundraisings                                                                181                                               115

Number of companies funded                                                  181                                               115

Proportion of deals into tech companies                             41.1 per cent                                42.8 per cent

Average pre-money valuation                                                    £8.67m                                         £7.77m

Proportion  into early-stage companies                                88 per cent                                   82 per cent

Looking only at number of fundraisings, the top two funders in October were equity crowdfunding platforms Crowdcube (ten deals) and Seedrs (eight deals). Looking instead at amount of money invested, Cambridge Innovation Capital topped the list, investing £94.4m, closely followed by CF Woodford Equity Income Fund  with£87.8m. The vast majority of investors were from the private equity and venture capital sphere.

The bulk of the funding (82 per cent) went into early-stage companies, with just 18 per cent going into companies that had already reached the growth stage.

The recipients of the largest fundings were Carrick Therapeutics (£73.9m), iwoca (£46m), GymBox (£39m), Graphcore (£24.5) and Second Home (£20m). All the companies are based in the South, with all but Carrick Therapeutics and Graphcore located in London. Most recipients were technology and IP-based businesses, although there was also a large contingent working within business and professional services.

Quick profiles of the top five funding recipients (in descending order):

  • Carrick Therapeutics develops a range of cancer treatments that can be specifically targeted towards each patient’s tumour, focussing on the aggressive and resistant strains. It was founded in 2015, and has received a total of £73.9m in equity, all within its October fundraising
  • iwoca provides short term loans for eBay and Amazon retailers. It was founded in 2011, and has received a total of £65.8m over five fundraisings
  • GYMBOX operates a chain of gyms. It was founded in 2008, and has received a total of £52.4m over four fundraisings
  • Graphcore has developed a processor optimised for machine-learning tasks, and technology to accelerate machine learning applications both in servers and in the cloud. It also provides an open-source machine learning development framework in C++ and Python. It was founded earlier this year, and its £24.5m October fundraisings is its only deal to date
  • Second Home operates a shared workspace and venue for businesses. It was founded in 2013, and has received a total of £32.7m over four fundraisings

Beauhurst is a platform that lets you access rich information on UK high-growth companies.

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