British Patient Capital Response to Small Business Equity Tracker 2023

The data highlights the fragile operating environment for companies as they navigate a tough economy and a more challenging route to accessing growth capital. However, there remain a number of bright spots with a record year for university spinouts, growth in life sciences, and green shoots of the next generation of technology – including cleantech, which bucked the wider market trend.

University spinouts received 12% of total equity investment in 2022, at a value of £2bn, reinforcing the strength of that ecosystem and the importance of British Patient Capital as a driving force for innovation in this space. Investments in life sciences firm OMass therapeutics and deeptech Quantum Motion via the £375m Future Fund: Breakthrough programme are just two examples, while a £30m investment in Northern Gritstone will support the commercialisation of research across the North of England.

There is even more opportunity ahead for long-term investors. The UK is the third largest market in nanotechnology, while space technology presents huge potential and one that VC-backed start-ups are already beginning to disrupt. Leveraging this opportunity is crucial and requires patient capital to fund the necessary research and development.

The data also shows that 26% of equity deals supported by the Bank, together with British Patient Capital, are going to companies with at least one female founder. This proportion is not only increasing over time but also higher than the wider PE/VC market, demonstrating our commitment to supporting a diverse VC ecosystem that enables female founders to access the finance they need to thrive.

Catherine Lewis La Torre CEO, British Patient Capital