Fuel For...

The
Innovation
Nation

The BVCA, in conjunction with Oxford Economics13 has released comprehensive research on the impact of venture capital on the UK economy. The research shows that the £4.1bn invested by venture capital and angel investors during 2015 has a massive impact on business start ups, job creation and overall contribution to the UK’s high-growth innovation economy…

VENTURE CAPITAL (£)

4.1bn 14

Fuel for...
start ups

Around 24,400 firms operating in theUK during 2015 received VC or angelbacking in the last five years. The vastmajority of these firms were start upsand small innovative businesses withless than 50 people.

Start Ups
24,400

Fuel for...
jobs

These firms employed some 200,000 people in highly productive jobs across the UK economy. VC backed jobs were estimated to contribute £73,700 per employee against a private sector average of £47,500.

People Employed
200,000

by UK firms backed by VC or
angel investment

Fuel for...
growth

These firms employed some 200,000 people in highly productive jobs across the UK economy. VC backed jobs were estimated to contribute £73,700 per employee against a private sector average of £47,500.

Revenue (£)

29.2bn

GDP (£)

15bn

Fuel For...

Tomorrow’s Innovation

Venture capital investment was heavily weighted toward the key growth sectors that will power the future of the UK economy. Around half of all VC and angel investment was concentrated on the digital economy in key strategic sub-sectors like online, media, entertainment and telecoms. A further 25% was invested in financial services and biotech and health. Perhaps unsurprisingly, VC investment is specifically targeted at the innovative, hi-tech sectors that will fuel the UK’s growth in year’s to come.

BUSINESS SECTORS
VENTURE CAPITAL
INVESTMENT
10%
BIOTECH
& HEALTH
15%
Financial

50%

Digital

Fuel For...

The
Wider
Economy

The impact of the wider eco-system supported by VC backed companies is even more impressive. When you consider the impact on the wider supply chain, the £15bn contribution to GDP doubles to £30bn - more than seven times the £4.1bn flow of VC and angel funding in 2015. In terms of jobs created by the sector, it is estimated that direct and indirect employment amounts to 480,000 full time employees, broadly equivalent to the amount of people working in the UK’s retail sector.

GDP

30bn

JOBS

480,000

4.1bn

15bn

30bn

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