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Key facts about venture capital in the UK

Source:

'Report on Investment Activity' by the BVCA

'The Economic Impact of Venture Capital in the UK' by the BVCA

	The UK industry is the largest and most developed in Europe, accounting for 49% of the total annual venture capital investment, second only to the USA in world importance.
	The UK venture capital industry has invested over £35 billion (£29 billion in the UK) in close to 19,000 companies since 1983.
	Over £1 billion was invested in UK high tech companies in 1999.
	In 1999 over £1 billion of new funds were raised for future investments in high tech companies.

A major recent survey demonstrated that:

	Venture backed companies create more jobs.
	Venture backed companies boost the UK economy.
	Over the four years to 1998, venture backed companies increased their staff levels by three times that of FTSE 100 companies and almost 60% faster than companies in the FTSE Mid-250.
	Over two million people in the UK are estimated to be employed by companies backed by investment from British venture capital.
	95% of the companies could not have existed or would have grown less rapidly without venture capital.
	The majority of firms said that with venture capital backing their level of employment and investments were higher than would have been otherwise possible.
	The first survey was published in June 1996. Since then employment, sales, exports and investment among venture backed companies has increased at a faster rate each year than the national growth rates.
	The number of people employed in venture backed companies increased by 24% p.a., whereas the national growth rate was only 1.3% p.a.

Percentage increase in employment rates per p.a.

On average venture backed companies increased sales by
40% p.a., or twice as fast as FTSE 100 companies profits by 24% p.a
exports by 44% p.a. compared with a national growth rate of 8% investment
by 34% p.a. compared with a national increase of 7%