A new report published by the BVCA today reveals the huge impact of venture capital and angel finance on start-ups and the wider economy.
Conducted by Oxford Economics, The Innovation Nation illustrates very clearly how important it is to keep the UK as a centre for entrepreneurship and investment as the country embraces its new global position. Employees at companies backed by angel investment and venture capital are 60% more productive than the total UK private sector average, and, once supply-chain impact is factored in, these businesses contribute a total of £37.7 billion of GDP to the UK economy.
The impact on the wider economy is even more significant. Factoring in purchases from UK suppliers and the spending of those working for angel and VC-backed businesses, and the total contribution to GDP almost doubles to £37.7 billion, and accounts for 570,000 jobs.
Michael Moore, Director General, BVCA, said:
“This report shows how venture capital and angel investment are powering the UK’s lead in European tech growth. Ground-breaking technologies and services are being created at pace. And while the money matters, the expertise from these investors is also critical to push the tech sector forwards.
“The talent is here, the technology is here, but, crucially, the funding is here. The Innovation Nation report illustrates just how important angel finance and venture capital are to the UK economy, providing investment and expertise to foster enterprise and build the champions of tomorrow. At a time when the UK is embracing a new role on the global stage, it is imperative fast-growing, innovative businesses and the capital that supports them are given every opportunity to thrive.”
David Mott, Founder Partner, Oxford Capital Partners, and Chair, BVCA Venture Capital Committee:
“The UK’s community of start-ups is as vibrant as ever, and Innovation Nation shows just how important angel finance and venture capital are to the future success of the UK economy. This country is a hub for global investment and entrepreneurship, and we are creating more companies, more jobs and more exports in high-value sectors. Angel and venture capital are absolutely vital to this success, fuelling both growth and productivity, and ensuring the UK maintains its place at the forefront of the global technological revolution.”
Tom Allchorne, Director, Communications, BVCA
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