Equity Finance for Start-up and Growing Businesses: Recent Trends

17 Pages Posted: 7 Dec 2023

See all articles by Nick Wilson

Nick Wilson

University of Leeds - Credit Management Research Centre; University of Leeds - Division of Accounting and Finance; University of Leeds - Faculty of Business

Marek Kacer

University of Leeds - Credit Management Research Centre (CMRC); Leeds University Business School (LUBS) - Accounting and Finance Division; University of Leeds - Faculty of Business; University of Economics in Bratislava

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Date Written: December 7, 2023

Abstract

Our recent report describes trends in equity finance deals in the UK in the period from 2011 to Q3 2023. The health of the equity finance ecosystem is of vital importance for development of the innovative enterprises that drive economic growth, employment, and the international competitiveness of the UK economy.

The significant drop of the overall investments in 2023 is a worrying phenomenon. After sizeable increases during the pandemic, the last two quarters of 2022, witness a sharp decline in investment in terms of both deal value and the number of deals, and the trend of gradual decrease continued till the end of the sample period in the third quarter of 2023. The average deal value dropped in the third quarter of 2022. It fluctuates around £3m since then, a significantly higher level when compared with the pre-pandemic period. The marked overall increase in the average deal value is driven, predominantly, by investors focusing on later stage, higher rounds and announced investments.

Keywords: Equity finance

JEL Classification: G23

Suggested Citation

Wilson, Nicholas and Kacer, Marek, Equity Finance for Start-up and Growing Businesses: Recent Trends (December 7, 2023). Leeds University Business School Working Paper, Available at SSRN: https://ssrn.com/abstract=4657150 or http://dx.doi.org/10.2139/ssrn.4657150

Nicholas Wilson (Contact Author)

University of Leeds - Credit Management Research Centre ( email )

Leeds LS2 9JT
United Kingdom
+44 (0)113 343 4472 (Phone)

University of Leeds - Division of Accounting and Finance ( email )

Leeds LS2 9JT
United Kingdom
+44 (0)113 343 4472 (Phone)

University of Leeds - Faculty of Business ( email )

Leeds LS2 9JT
United Kingdom

Marek Kacer

University of Leeds - Credit Management Research Centre (CMRC) ( email )

Leeds, LS2 9JT
United Kingdom

Leeds University Business School (LUBS) - Accounting and Finance Division ( email )

Leeds LS2 9JT
United Kingdom

University of Leeds - Faculty of Business ( email )

Leeds LS2 9JT
United Kingdom

University of Economics in Bratislava ( email )

Dolnozemská cesta 1
Bratislava, 852 35
Slovakia

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