A review of Q2 2020 growth capital investment in the CreaTech sector
According to our research into UK private companies raising between £1 million and £20 million each of growth equity capital, 161 British businesses raised £779 million of growth capital in the second quarter of 2020. The Q2 figures for the overall growth capital market illustrated a 10% – 15% quarter-on-quarter decline in the number of deals completing and the amount of growth capital being raised. This is not surprising, given that the UK was in lockdown because of Coronavirus for most of this period.
The createch sector has performed slightly better than the wider growth capital market in Q2 2020, experiencing quarter-on-quarter declines of between 9% and 13%. 32 deals have completed, raising an aggregate £149 million. Its overall share of the growth capital market has therefore increased slightly this quarter, and createch deals now make up 20% of all deals completed. This proves that the tech behind Britain’s creative industries continues to be popular with growth capital investors.