The British Business Bank has just released a report saying VC in the UK is performing well against the US.
In Brief:
Higher company valuations have contributed to an increase in financial returns for VCs.
Fund managers also pointed to high levels of competition for deals.
The US outperforms the UK for the top 3% of its funds, but this gap has closed from 8% in 2019.
What does this mean?
The report, “UK Venture Capital Financial Returns 2021” examined 154 UK VC funds and covers 38% of the UK VC market. The UK’s increased performance could mean that the UK is a more attractive environment for limited partners.
