Doing our bit to keep the VC sector ticking over
The recent Pitchbook Data newsletter revealed that LCIF/ Funding London was the second most active VC fund in the UK (Chart below).
Chart courtesy Pitchbook.com, Newsletter: The 9 most active VC investors in UK startups, June 14, 2016
Whilst this is pleasing to note, and an endorsement of our model and position in the sector, it comes in the backdrop of a marked slowdown in the investment activity in 2016.
Our own experience of the market place bears this, with many of our co-investment partners biding their time to get more clarity on macro-economic factors (Brexit) and choosing to reserve capacity for their portfolio companies in case of a sharp down-turn, rather than invest in new businesses.
We hope that this is a short term slow-down and the activity will pick up after the uncertainty of Brexit is cleared. In the interim, LCIF continues to invest in promising new ventures. We now have a portfolio of 50 companies in a broad range of technology sub-sectors.
It is also worth noting that the other most active investor was Scottish Enterprise. It is in times of slow-down like this, that the need for public funded investors becomes more evident.