Equity investment in the UK 2017

This report analyses all equity investment in non-listed UK companies between 1 January – 31 December 2017.
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
invest Deal year investor company growth high growth firm foreign business foreign investor Deal number capital raise megadeal stage amount
This report analyses all equity investment in non-listed UK companies between 1 January – 31 December 2017.
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
invest Deal year investor company growth high growth firm foreign business foreign investor Deal number capital raise megadeal stage amount
Equity investment in the UK 2017 
The Deal
 
 
 
 
 
1 
from the ceo
 
A word from our CEO on a year 
 
that broke records.
3 
2017 in review
 
The need-to-know: 2017’s biggest  
 
trends and headline statistics.
 
The year of the megadeal — we  
	
examine	the	significant	rise	of	
 
deals worth £50m+.
19 
foreign money
 
At its highest level since records  
 
began, we assess FDI’s impact.
25 
sectors in focus
 
Fintech shows no signs of stopping  
 
 — which companies stand to gain  
 
from a record year?
 
Subscription business is blooming:  
 
why even clothes are now 
 
subscription-based.
 
The dawn of machine intelligence 
 
has workers worried, but should it?
 
Food for thought. Is eating out on  
 
the up, or are investors dining out 
 
on takeaways?
39 
racing for the exit
 
Could the rise of larger deals be  
	
affecting	exits	for	startups?
45 
investors in focus
 
We take a look at the year’s top  
 
investors by deal numbers — who  
 
has been the most active?
 
Angel networks continue to hold  
 
strong in Scotland. Have they been  
	
affected	by	crowdfunding?
 
Crowdfunding has bounced back  
	
after	a	decline	last	year.	We	take	a		
 
closer look at activity in the space.
53 
the big picture
 
 How have the Treasury and BEIS  
	
affected	growing	firms?
56 
beauhurst 
 
See how you could use our data for  
 
your own data-driven content.
about this report 
This report analyses all announced equity investment in non-listed UK companies between
1 January – 31 December 2017. 
 
why equity investment? 
Beauhurst tracks the UK’s non-listed high-growth companies. The majority of these 
companies	have	raised	equity	finance	to	fuel	their	growth.	By	looking	at	equity	fundraising	
activity across the UK, we’re able to see the emerging trends and patterns from the 
perspective of investors and the businesses themselves.
 A word from our CEO 
This time last year, I wrote that 
our sombre forecast for 2016 had 
not been pessimistic enough. 
Deals and investment both fell 
dramatically. 
This year couldn’t be more 
different.	We’re	delighted	to	
announce that 2017 has been the 
best year on record for investment 
into	ambitious,	high-growth	firms.	
Deal numbers are very nearly 
back to their 2015 peak, and as for 
the amount invested – well, I’ll let 
you read the report. 
Last year, a major area of concern 
was the re-emergence of the 
equity	gap	for	scaling	firms.	Over	
the course of 2017 our fears have 
been eased: investment into 
venture-stage	firms	has	increased	
significantly.	Moreover,	this	is	a	
trend that we think is likely to 
continue, partly thanks to the 
Chancellor’s decision to double 
the limit for tax relief on EIS 
investment. 
When it comes to the growth 
stage, we’ve seen more £50m+ 
‘megadeals’ than ever before – 
with appetite from large foreign 
investors showing no sign of 
slowing. Only seed-stage deals 
have stagnated.
It’s good to see that the UK’s 
image	as	a	powerhouse	of	fintech	
innovation	is	increasingly	justified	
by the data, with remarkable 
levels	of	investment	into	firms	as	
diverse as challenger banks and 
cryptocurrency platforms. London 
in	particular	saw	a	significant	
increase in deal numbers, and 
fears that Brexit would result in a 
loss of City-based innovation have 
so far proved unfounded.
Looking ahead, we expect seed-
stage deals to remain relatively 
flat	in	terms	of	volume.	Deals	
across the board, however, are 
likely to continue increasing in 
size – particularly at later stages. 
The South West is set to keep 
eating into the South East’s deal 
numbers, and we’ll be keeping 
a keen eye on Scotland in the 
hope that last year’s phenomenal 
growth stays the course.
I’d like to thank the team here for 
putting this report together, and 
hope	you	find	it	as	interesting	to	
read as we did to write. We’ll be 
sharing it widely, and invite you to 
do the same.
As ever: if you have questions, 
comments, or would like to know 
more about how we compile our 
research, don’t hesitate to get in 
touch with us.
toby austin
ceo and co-founder
toby@beauhurst.com
 @Beauhurst
2017 has been the best year on record for 
investment into ambitious, high-growth firms.
2017 in 
review
2017 has been a record year in a number of ways. 
More cash has been invested in British high-growth 
companies than ever before, and we’re seeing 
more interest from government in the high-growth 
ecosystem than perhaps any time in history.
Eleanor Sharman
4 In Reviewthe most cash ever invested 
More	than	twice	as	much	cash	has	gone	into	 
high-growth	firms	than	in	2016,	with	£8.27b	invested
the year of the megadeal
29 ‘megadeals’ of £50m+ were seen – four times as 
many as last year
25% of megadeals go to fintech
A	quarter	of	all	megadeals	went	into	fintech	firms,	
and the sector grew by 15% (20 deals) overall 
backed by foreign money
Investment from outside the UK played a part in 23 
of the 29 megadeals, and is growing rapidly 
larger deals, fewer exits
IPOs are a way of raising capital, but bigger deals 
lower demand for that cash: 2017 saw just 9 exits
london takes the lion’s share
72% of megadeals went into the capital, which also 
took	more	than	half	of	all	deals	for	the	first	time
5 In Review2017 has been a record year in a number 
of	ways.	More	cash	has	been	invested	in	
British high-growth companies than ever 
before, and it’s coming in ever-larger deals. 
Fintech growth shows no signs of slowing, 
and we’re seeing more interest from 
government in the high-growth ecosystem 
than perhaps any time in history.
This is all particularly remarkable given 
the gloomy prospects anticipated in the 
wake of Brexit. Even now, forecasts belie 
the strength of the high-growth economy 
–	with	foreign	investment	in	UK	firms	at	its	
highest since records began.
megadeals from abroad
In December, we declared 2017 the year of 
the	megadeal.	Days	afterwards,	another	
two deals worth £50m+ apiece closed. In 
total, the year saw two of the three biggest 
investments since 2011.
Of course, huge investments aren’t right 
for	every	company.	And	indeed	for	the	first	
time, we saw a drop in the percentage and  
volume of seed-stage deals. There’s more 
cash out there - particularly from foreign 
investors	-	but	it’s	going	into	firms	that	
have already raised millions.
What does this mean for the high-growth 
landscape? Nothing, we hope, disastrous. 
The crowdfunding market, typically 
populated by nascent B2C startups, 
looks	to	have	reached	equilibrium	after	
its meteoric rise from 2011-15. Angel 
investment has remained more or less 
steady in recent years, too, with both 
seeing a slight uptick in deals over 2017. 
geography
The funding landscape is not diversifying. 
London’s share of equity deals has been 
creeping up since 2013, and last year was 
no exception. The capital now boasts more 
than half of all deals (51%)  in the country. 
That said, both Scotland and the South 
West performed considerably better than 
expected, with 43% and 50% increases in 
deals respectively.
 A stand-out year 
2017 in review
6 In ReviewThe North East continues to see declining 
deal numbers, completing just 27 over 
the course of the year – fewer than any 
previous period. This is partly due to the 
huge decline in deals backed directly by the 
government:	hitting	a	peak	of	48	in	2013,	
government-backed investments last year 
plummeted to just 13 (compared to 45 for 
London, an increase of 11 on 2016).
But in London and elsewhere, government 
support typically makes up a relatively 
small portion of total deals (13.9% on 
average). In the North East, despite the fall, 
it	constituted	48%.	There	is	no	other	region	
in England that sees greater participation 
from government than from private equity 
and venture capital. 
An interesting comparison is to the North 
West, which has also seen governmental 
support	tail	off	in	the	last	three	years	–	but	
no	sooner	did	it	do	so	than	PE	and	VC	firms	
leapt	in	to	fill	the	gap.	The	same	happened	
in	the	West	Midlands.	What’s	keeping	the	
private sector at bay in the North East?
fintech’s best year
The	UK	is	famed	for	its	fintech,	and	2017	
saw the sector’s best year yet. While 
broadly deal numbers haven’t increased, 
fintech’s	ascent	has	been	remarkable,	and	
last	year	saw	firms	in	the	sector	secure	over	
£1b	for	the	first	time.
Britain	now	hosts	a	clutch	of	fintech	super-
startups, some of which (TransferWise and 
Funding Circle) have made it to unicorn 
status. Other foals likely to mature this year 
include WorldRemit, Algomi, LendInvest, 
and at least one challenger bank.
Indeed, challenger banks came into their 
own	for	the	first	time	last	year,	securing	
19 raises and over £500m in funding. The 
best-known and largest (by amount raised) 
are	Atom,	Starling,	and	Monzo,	but	at	least	
half a dozen others have now achieved 
valuations in the tens of millions.
A broader question about the fate of our 
tech ecosystem remains, but the huge 
funding	rounds	of	2017	have	set	fintech	
firms	up	for	success.
7 In Review
8 In Review8 In ReviewA decline in deal numbers and investment in 2016 caused worry that support for young companies was 
faltering.	But	with	£8.27b	invested	over	2017,	smashing	every	record	since	2011,	fears	were	proved	wrong.	
This growth was driven by a few very large deals, proving that capital is available for the right opportunity.
1505
equity investment deals
£8.27b
invested into UK companies
£6.8m
average investment size
Investment activity in 2017
5%
increase
113%
increase
93%
increase
a record year for amount invested
how did 2017 compare with 2016?
2011
2012
2013
2014
2015
2016
2017
488
739
1010
1399
1537
1436
1505
£1.5b
£1.9b
£1.8b
£3.4b
£4.3b
£3.9b
£8.3b
Q1
Q2
Q3
Q4
369
362
449
325
£1.0b
£2.1b
£2.1b
£3.0b
9 In Review9 In ReviewInvestment stages 
more money, fewer deals
Last	year,	firms	at	every	stage	of	their	development	received	more	cash	than	any	period	on	record.	Nowhere	
was	this	effect	more	pronounced	than	at	the	growth	stage,	which	saw	investment	rocket	from	£2.4b	in	2016	
to more than double that (£5.5b). Yet deal numbers were less buoyant, slowing at all but the venture stage.
larger deals are the new norm
£50m+
£10-50m
£5-10m
£2-5m
£1-2m
£500k-1m
<£499k
2011 2012 2013 2014 2015 2016 2017
2011 2012 2013 2014 2015 2016 2017
2011 2012 2013 2014 2015 2016 2017
£1B
£2B
£3B
£4B
£5B
100
200
300
400
500
600
700
2011
2012
2013
2014
2015
2016
2017
2011
2012
2013
2014
2015
2016
2017
SEED
VENTURE
GROWTH
AMOUNT INVESTED
NUMBER OF DEALS
Seed
Venture
Growth
10 In Review10 In ReviewGeography
percentage change in deals by region
For	the	first	time,	investments	into	London	firms	made	up	more	than	half	(51%)	of	all	deals,	consolidating	the	
capital’s dominance. Other regions felt the strain: the North East has seen deals decline for seven consecutive 
years. Scotland, however, performed particularly well, as did the South West.
regional deal numbers
Nor
th E
ast
Sco
tlan
d
Nor
th W
est
Wa
les
We
st M
idla
nds
Eas
t Mi
dla
nds
Nor
the
rn I
rela
nd
Yor
ksh
ire 
& H
um
ber
side
Sou
th W
est
Sou
th E
ast
Eas
t of
 En
glan
d
Lon
don
-34%
44%
3%
18%
5%
-38%
22%
-10%
50%
-12%
8%
-13%
27
122
97
45
43
18
22
46
81
142
93
769
North East
Scotland
North West
Wales
Northern Ireland
Yorkshire
South West
South East
West Midlands
East Midlands
East of England
London
11 In Review11 In Review2015
2014
2013
2012
2011
2016
2017
Geography
london’s ever-increasing proportion of deals
0
100%
50%
25%
75%
12 In Review12 In ReviewSectors and verticals
fintech deal amounts over time
The	runaway	success	story	of	2017	was	fintech,	outperforming	even	AI	–	which	saw	deals	decline	for	the	first	
year	–	from	92	deals	to	87.	Proptech,	too,	confirmed	its	status	as	a	hot	topic,	securing	48	deals	despite	(or	
perhaps because of) a notoriously challenging housing market.
deals in selected verticals over time
2011
2012
2013
2014
2015
2016
2017
0
20
40
60
80
100
120
140
Fin
Tec
h
AdT
ech
Arti
ficia
l Int
ellig
enc
e
Ser
vice
s on
 dem
and
EdT
ech
Pro
pTe
ch
Gra
phe
ne
2011
2012
2013
2014
2015
2016
2017
£108.2m
£65.9m
£141.9m
£381.9m
£587.3m
£439.4m
£1310.1m
13 In Review13 In Reviewdeals by investor type over time
Investors and valuations
As ever, private equity and venture capital funders led the pack, and by an increasing margin. Crowdfunding 
retained	its	position	in	second	place,	having	stabilised	recently	after	a	four-year	period	of	rapid	growth.	The	
average pre-money valuation was over double that of 2015.
average pre-money valuations over time
2011
2012
2013
2014
2015
2016
2017
0
100
200
300
400
500
600
PE/
VC
Cro
wdf
und
ing
Cor
por
ate
Gov
ern
me
nt
Ang
el N
etw
ork
2011
2012
2013
2014
2015
2016
2017
£5.9m
£5.6m
£5.6m
£6.7m
£8.9m
£11.3m
£18.2m
14 In ReviewThis	is	a	trend	we	identified	in	our	Q3	
report: in that quarter alone, we’d seen 
eight ‘megadeals’ of £50m or more. 
Looking at the data for the whole year, 
there have been 29, with another 12 in the 
last quarter of the year. That’s over 4 times 
as many as 2016, which saw 7, and whilst 
2015 performed well with 15, this was 
preceded by just 10 in 2014. 
All of this is to say that whilst deal numbers 
as a whole have not made much progress 
in 2017, there have been more megadeals 
than	ever	before.	Many	of	these	deals	have	
been	in	the	fintech	sector,	accounting	for	
25% of 2017’s megadeals. The huge deal 
amounts can partly be accounted for by  
the capitalisation requirements that some 
of	these	fledgling	banks	and	lenders	have.
 The year of the megadeal 
2017 in review
2011
2012
2013
2014
2015
2016
2017
£0M
£100M
£200M
£300M
£400M
£500M
£600M
£700M
megadeals over time
15 In ReviewSouth West
South East
Scotland
North West
North East
London
East of 
England
2017 megadeals 
regions
2017 megadeals 
sectors
Alcohol
SaaS
Virtual 
reality
Media
IT services
Insurance
Healthcare
Food delivery
Telecoms
Fintech
Engineering
E-commerce
Digital 
security
16 In ReviewTransferWise
The Hut Group
Atom
megadeal date
2 November 2017
amount 
$280m	(£215m)
investors
Institutional	Venture	Partners,	Mitsui	&	
Co.	Global	Investment	Ltd.,	Old	Mutual	
Global Investors, Sapphire Ventures, 
World Innovation Lab
total raised to date
£290m over seven rounds
megadeal date
13 August 2017
amount 
£125m
investors
Old	Mutual	Global	Investors,	Sofina
total raised to date
£305m over eight rounds
megadeal date
23 September, 17 November 2017
amount 
£285m,	$98m	(£74.1m)	
investors
Eight Roads Ventures, T. Rowe Price, 
Accel, Digital Sky Technologies, Fidelity 
Management	&	Research	Company,	
General Catalyst Partners, Index Ventures
total raised to date
£700m over eight rounds
megadeal date
11	May	2017
amount 
$502m	(£389m)
investors
SoftBank	Capital
total raised to date
£423m over four rounds
17 In ReviewAtom
Secret Escapes
Atom
Atom
megadeal date
28	Feb	2017
amount 
£113m
investors
BBVA , Toscafund, Woodford Investment 
Management
total raised to date
£283m	over	seven	rounds
megadeal date
22 June 2017
amount 
$397m (£313m)
investors
JD.com
total raised to date
£516m over eight rounds
megadeal date
7 November 2017
amount 
£71m
investors
Orange Digital Ventures, Passion Capital, 
Goodwater Capital, Stripe, Thrive Capital
total raised to date
£107m over seven rounds
megadeal date
5 October 2017
amount 
$111m	(£84.6m)
investors
Commercial Banking Loans (managed 
by Silicon Valley Bank), IDInvest Partners 
Growth Capital, Temasek
total raised to date
£140m over eight rounds
Foreign 
money
Foreign investment into the UK’s high-growth 
companies hit an all time high in 2017. A 
whopping £5.9b was invested over 369 deals, 
and foreign appetite for investment in the UK is 
growing faster even than domestic funding.
Jake Ford
20 Foreign £2017 has been a real record year for 
foreign investment into the UK’s high-
growth companies. A whopping £5.9b 
was invested over the course of the year, 
in 369 deals involving at least one foreign 
investor.	This	is	up	by	£3.8b	on	last	year.	
What is perhaps even more striking is that 
even if we take into account the overall 
increase in investment between 2016 and 
2017, the value of foreign capital invested 
grew	at	a	significantly	faster	rate.	Foreign	
deal numbers increased in a similar way, 
suggesting that the UK’s desirability as 
a place for foreign investment improved 
hugely over the course of the year.
It is encouraging to see that foreign 
investors	are	offering	a	great	deal	of	
support to the UK’s growing businesses, 
and this trend is showing no signs of 
stopping — almost £1b was invested from 
abroad in November alone. 
 Cash flies in from abroad 
foreign money
21 Foreign £more deals involving 
foreign investors
187%
more invested by 
foreign investors
60% 
foreign investment and deal numbers
2011
2012
2013
2014
2015
2016
2017
488
739
1010
1399
1537
1436
1505
93
134
149
186
213
230
369
All deals
Deals with at least 
one foreign investor
£1.49b
£1.96b
£0.74b
£0.81b
£1.49b
£1.40b
£2.07b
£2.05b
£5.87b
£4.25b
£1.79b
£3.35b
£3.89b
£8.27b
22 Foreign £the origin of megadeals 
As reported earlier, 2017 has been the year 
of the ‘megadeal’ (transactions equal to or 
exceeding £50m). Foreign investors have 
played a crucial part in this, participating in 
23 deals worth £3.7b throughout the year. 
It is unsurprising that foreign investors 
have been so heavily involved, given that 
countries such as the US and China are 
home to large funds that have access to 
significantly	more	capital	than	those	in	
the UK. What’s interesting is this year’s 
increase in appetite from those funds. The 
preference of foreign investors for larger 
deals is shown in the chart above — indeed, 
the larger the deal size, the more likely 
there will be foreign involvement.
Some notable megadeals involving 
foreign investors are those of the ever-
growing	challenger	banks.	Monzo	raised	a	
£71m round, which included investment 
from New York-based Thrive Capital and 
California-based Goodwater Capital. 
Atom’s £113m raise included investment 
from the Spanish banking group BBVA, and 
Revolut raised $66m in a round contributed 
to by California-based Ribbit Capital.
deals involving foreign investors by investment size
<£100k
£100k-£500k
£500k-£1m
£1m-£5m
£5m-£10m
£10m-£50m
£50m+
94%
90%
83%
72%
52%
37%
21%
79%
10%
17%
28%
48%
63%
6%
No foreign investors
Foreign investors
23 Foreign £where is the money going? 
It’s clear that 2017 has been a great year 
for foreign investment, but where exactly 
is all the money going? As with previous 
years, 2017 saw foreign investors support 
a high proportion of companies in the tech 
and professional services sectors. Given 
that large numbers of these high-growth 
businesses are based in London, it comes 
as no surprise that it remains the UK’s hub 
for foreign investment. In fact, more funds 
are choosing to base themselves in the 
capital in order to be closer to this action. 
Going	into	2017,	SoftBank	made	London	
the base of its $100 billion Vision Fund, 
which is the biggest technology fund in the 
world, further securing London’s future as 
a centre for tech investment. Interestingly, 
the	East	Midlands	received	no	foreign	
investment at all in 2017, despite having 
22 growth-stage tech and professional 
services companies. Foreign investors 
seem unwilling to stray too far from the 
financial	capital,	but	could	they	be	missing	
out on potential winners?
regional share of investment
uk investors only
at least one foreign investor
regional share of deals
uk investors only
at least one foreign investor
Nor
th E
ast
Sco
tlan
d
Nor
th W
est
Wa
les
We
st M
idla
nds
Eas
t Mi
dla
nds
Nor
the
rn I
rela
nd
Yor
ksh
ire 
& H
um
ber
side
Sou
th W
est
Sou
th E
ast
Eas
t of
 En
glan
d
Lon
don
Sectors 
in focus
2017 has seen exciting developments in 
sectors ranging from food delivery to artificial 
intelligence, and especially in fintech. We take a 
look at some of the year’s stand-out verticals.
26 Sectors Fintech shows no signs of stopping 
sectors in focus
It was widely predicted that 2017 would 
prove	a	stellar	year	for	fintech,	as	new	
entrepreneurs sought ways to disrupt 
legacy aspects of the banking world whilst 
more	established	firms	consolidated	
their position with fresh funding and new 
products. The predictions were right: in 
June,	the	top	ten	publicly-traded	fintech	
businesses crossed the $100 billion market 
capitalisation	mark	for	the	first	time.	By	the	
end	of	December,	that	figure	had	surged	to	
$130 billion.
When	it	comes	to	unlisted	firms,	the	
numbers may be smaller – but the 
potential is huge. And the amount poured 
into	the	fintech	scene	topped	£1.3	billion	
by the end of 2017; almost triple the £439m 
invested the year before. 
a share of megadeals
This	figure	is	buoyed	by	2017’s	increase	
in megadeals. Three challenger banks, 
Atom,	Monzo	and	Revolut,	each	jostled	for	
these, securing £113m, £71m and £51m 
fintech amount and deals
2011
2012
2013
2014
2015
2016
2017
£1,310.1m
£381.9m
£141.9m
£108.2m
£587.3m
£439.4m
£65.9m
19
31
52
101
110
130
150
27 Sectorsrespectively.	2017	also	saw	Monzo	and	
Revolut launch their own current accounts, 
as they geared up to increase competition 
with traditional high street banks. 
TransferWise, fast becoming a household 
name,	clinched	the	fintech	megadeal	of	the	
year,	however,	with	$280m	raised	from	a	
set of investment heavyweights including 
Old	Mutual	and	Mitsui	&	Co.	All	in	all,	
data shows that 2017 has been a bumper 
year	for	the	fintech	industry	-	and	when	
compared with 2011, the amount of cash 
invested	into	UK	fintech	has	soared	by	
around 1100%. 
It’s possible that Brexit and the possibility 
of a low-tax North Sea haven are making 
Britain more attractive to overseas 
investment, which seemed to drive 
many of 2017’s larger deals. It’s certainly 
true that the imminent split with the EU 
doesn’t seem to have dampened investor 
enthusiasm	for	UK	fintech	startups.
what’s next for fintech?
A	lot	of	concerns	regarding	high-profile	
B2C	fintech	companies	focus	on	how	they	
will actually make money. TransferWise 
is, unsurprisingly, nearly in the black, 
with revenues more than doubling to 
£67m in 2017. With losses dropping from 
£17m to just £16k, they are on course for 
a	considerable	profit	margin	in	2018.	Get	
your eWallets ready for a potential IPO. 
Atom’s losses continue to slide, although 
its turnover has jumped considerably 
(from £46k in 2016 to over £1.1m in 2017). 
Monzo’s	most	recent	financial	statement	
shows an operating loss of £6.7m, but this 
is common for ambitious young startups 
investing heavily in their own growth, 
and it has several interesting avenues for 
generating turnover in the future. Revolut 
has published full accounts, revealing a 
healthy turnover increase.
Meanwhile,	the	hype	surrounding	
cryptocurrencies in 2017 has translated 
into investor interest: announced equity 
investment rose from £512k in 2015 to 
£42m in 2017. We’ll have to wait and see if 
this outlasts bitcoin’s recent bust. 
We look forward to tracking the UK’s 
fintech	companies	through	2018,	and	
watching the extent to which they 
challenge	our	traditional	financial	
institutions. 
Tom Sheils
28 Sectors 
flowerbx
Flowerbx,	founded	in	2014,	offers	luxury	flowers	on	
a subscription and individual basis. Founded with 
by former Tom Ford PR workers Whitney Hawkings 
and Adam Wilkie, the company sells subscriptions 
to high-end clientèle. It lists Dior, Harrods, and 
Christie’s amongst its customers. 
The	firm	blossomed	in	2017,	securing	£1.5m	from	
a	number	of	high-profile	investors	including	Dame	
Natalie	Massenet,	founder	of	e-commerce	retailer	
Net-A-Porter. Flowerbx will use the investment to 
expand across Britain and Europe.
cornerstone
Cornerstone takes aim at the men’s shaving market, 
focusing on simplicity, style and quality. Enticing 
customers with a free blade on signing up, the 
service boasts 130,000 users. This success resulted 
in Cornerstone’s receiving £3.5 million in a 2017 
round led by Calculus Capital. With this deal also 
came expertise in the form of William Reeve, who 
has sat on the board of a number of subscription 
businesses including Graze and LoveFilm.
butternut box
Butternut box has taken hold of a niche but 
potentially	lucrative	market,	by	offering	tailor-
made dog food straight to your door. The London 
startup, headed up by two former Goldman Sachs 
employees, focuses on providing high-quality 
ingredients to make into meals for dogs across 
the UK. 2017 saw the company raise its largest 
investment to date, receiving £1 million from the 
prolific	Passion	Capital.
29 SectorsThe idea is simple: customers can receive 
any product – whether it be food, clothing, 
or	cosmetics	–	delivered	as	often	as	suits	
them. In unsurprising news, people appear 
to enjoy the convenience. In fact, the idea 
has proved so popular that subscription 
boxes now exist for products as diverse as 
socks, razors, and dog food.
Investors also understand the appeal. 
Firms using this model are securing both 
record numbers of deals and a record 
amount of funding: in 2017 they raised a 
total	of	£18.4	million,	over	16	rounds	of	
fundraising. That’s more cash than in the 
last three years combined.  
The single biggest investment was £3.75m 
into	subscription	florist	service	Bloom	&	
Wild. 
a new way to do business
It’s hardly surprising that 2017 saw success 
for this business model. Subscription 
services in the media landscape have been 
some of the biggest success stories of the 
21st	century.	Companies	such	as	Netflix	
and Spotify have arguably changed the 
way we consume digitally, and forced large 
industry players to adapt along the way.
So it’s no wonder lifestyle products have 
decided to follow suit. Food in particular is 
popular: Blue Apron, an American meal-
kit	firm,	shows	no	signs	of	slowing	its	
growth,	and	UK	firms	such	as	Home	Fresh	
and Graze have been performing well. 
Indeed, Graze is subject to rumours of an 
impending	sale	in	2018	for	£300m.
Interestingly, all the companies that 
received investment in 2017 were either at 
their seed or venture stages. Investment 
in these early-stage companies indicates 
belief that there’s a growing desire for 
businesses of this nature and their services, 
but that the market is far from mature.
 Subscription business is blooming 
sectors in focus
Daniel Osei
2014
2015
2016
2017
16
11
14
7
£18.4m
£4.5m
£6.7m
£1.5m
subscription investment
and deals
30 Sectors The dawn of machine intelligence 
sectors in focus
Artificial	intelligence,	described	as	“the	
ultimate breakthrough technology” by 
Microsoft	CEO	Satya	Nadella,	has	the	
potential to revolutionise business. Its 
development	represents	a	paradigm	shift	
in technology.
 
Although basic forms of AI systems have 
been around since the 1950s, via limited 
rule-based algorithms, it is only in the last 
couple of decades that AI and its machine 
learning subset have dawned upon us, 
enabling traditionally human capabilities 
— understanding, planning, reasoning  — 
to	be	effectively	and	efficiently	undertaken	
by	software.
Indeed,	2017	saw	87	UK	AI	companies	
receiving equity investment to develop 
their technology, adding to the recent 
acceleration of innovation which has made 
AI such a hot topic in boardrooms across 
the globe.
keeping us safe
Darktrace,	a	UK	cybersecurity	firm	with	
offices	in	Cambridge	and	San	Francisco,	
uses AI algorithms that mimic human 
immune system processes to protect 
enterprise networks from unwanted 
intrusion, which could lead to intellectual 
property loss and other grievances.
In fact, cyberattacks can originate from the 
most unlikely of sources: we’ve witnessed 
an Internet-connected refrigerator hacked  
31 Sectorsartificial intelligence deals over time
in order to generate spam email messages, 
and	a	casino’s	fish	tank	thermostat	
controlled	in	order	to	access	the	casino’s	
high-roller	database.
To	tackle	such	challenges,	Darktrace	raised	
an	impressive	$75m	(£58m)	in	equity	last	
summer,	in	a	round	led	by	US	investor	
Insight	Venture	Partners	with	follow-on	
participation from Summit Partners, KKR 
and	TenEleven	Ventures.
taking our jobs?
University	of	Oxford’s	spinout	DiffBlue,	
with	its	proposition	“AI	for	code”,	brings	
a refreshing way of cracking coding tasks 
traditionally done by humans, such as 
test	writing	and	bug	fixing,	by	using	AI	
techniques to analyse and improve code. It 
received £17m in equity last June, reaching 
a post-money valuation of nearly £50m, 
which	puts	the	venture-stage	firm	in	a	very	
comfortable position for further growth.
 
artifical intelligence  
deals in 2017
£415m
invested into  
AI in 2017
87
2011
2012
2013
2014
2015
2016
2017
£414.7M
£195.2M
£23.9M
£76.5M
£99.2M
£6.7M
£6.6M
4
11
20
36
49
92
87
32 Sectorsraising prices...
Seed-stage company Pace is picking 
up speed in solving dynamic pricing 
challenges in the hospitality industry, by 
employing	advanced	artificial	intelligence	
methods to help hotel revenue managers 
get the best out of their properties and 
booking operations.
Dynamic pricing allows businesses to 
respond nimbly to market trends, taking 
into account historical data to adjust 
prices almost instantaneously. Airlines 
and	car	rental	firms	already	make	use	of	
dynamic pricing in their yield-management 
systems, and hotels are next in line. Based 
in	a	Google	Campus	office	in	London,	Pace	
raised £2.5m in December to continue 
growing its tech and marketing teams.
...but lowering legal fees
Aimed	at	the	financial	services	industry,	
growth-stage Behavox is paving the way 
in	enabling	institutions	to	efficiently	keep	
tabs on regulatory and compliance risk 
by tapping into the AI potential pool. The 
company recently raised $20m, in a round 
led by Citigroup alongside Index Ventures.
the verdict
Although many jobs we’re used to seeing 
done by people are now becoming possible 
to automate, we’re not too worried. As The 
Economist is fond of observing, technology 
has always created more jobs than it has 
destroyed. Heightened appetite from 
investors, then, is in all of our interests.
Ester SimÕes
The recent 
acceleration of 
innovation has 
made artificial 
intelligence 
a hot topic in 
boardrooms 
across the globe.
“
33 In Review
34 SectorsOn the surface, 2017 was a strong year 
for the restaurant industry, with a 
notable increase in the amount of equity 
investment raised. Across the year an 
enormous £435m was injected into 
various food outlet businesses across 53 
announced	fundraisings.	This	figure	is	
almost double the investment raised  in 
2015. In 2016, the value of investment was 
also considerably lower at £272m across 
47 fundraisings. Looking even further 
back to 2014, where the total value of 
investment across 42 fundraisings was a 
humble £56.1m, it is evident just how fast 
the amount invested in this industry has 
increased over the past three years.
Not every restaurant, cafe or food outlet 
will opt for equity investment – unlike, say, 
tech	firms,	which	might	see	equity	as	a	
more natural option – and this may explain 
why the total amount invested has gone 
up, but deal numbers have not risen at the 
same speed. It is not more deals fuelling 
this change, but successful businesses 
needing more investment to fuel growth.
whose cash?
As in many sectors, private equity and 
venture	capital	firms	have	powered	the	
highest-value fundraisings this year. The 
top investors in this sector include T. 
Rowe Price, Eight Roads Ventures, and 
Accel. However, looking at the funds each 
investor gave, all of them went to the 
online takeaway service Deliveroo. Reports 
suggest the fast-growing company is likely 
to contribute £1.5b to the UK’s economy by 
2019.
This	means	that	even	though	these	firms	
contributed	the	largest	figures,	it	was	
in fact crowdfunders who consistently 
provided funding to the food outlet 
industry throughout the year. Both 
Crowdcube and Seedrs supported 
multiple fundraisings, and unlike the 
PE	and	VC	firms,	their	investments	were	
distributed across the industry in a range 
of	restaurants	such	as	Moody	Burgers	
(a	Swindon	takeaway),	Grind	&	Co	(a	
coffee	and	cocktail	chain),	Mindful	Chef	(a	
subscription	recipe	box)	and	Beef	&	Brew	(a	
butchery-style meat and beer restaurant). 
 Food for thought 
sectors in focus
2014
2015
2016
2017
£435m
£272m
£228m
£56m
42
53
47
54
£123m
£210m
£359m
£3m
deliveroo takes a large portion 
of food outlet cash
Total investment
Deliveroo investment
35 In Review2017 food outlet  
deals by region
Nor
th E
ast
Sco
tlan
d
Nor
th W
est
Wa
les
We
st M
idla
nds
Eas
t Mi
dla
nds
Nor
the
rn I
rela
nd
Yor
ksh
ire 
& H
um
ber
side
Sou
th W
est
Sou
th E
ast
Eas
t of
 En
glan
d
Lon
don
2
1
35
1
4
4
0
1
1
1
2
0
36 Sectorswhich companies?
It should be no surprise to see Deliveroo, 
one of Europe’s fastest-growing startups, 
top	the	list	of	firms	by	amount	raised.	
From receiving the most investment in this 
industry to gaining unicorn status with a 
£1.09b valuation – 2017 was hailed the year 
of Deliveroo. Taking a careful look at the 
investment growth in the catering industry, 
it is evident that Deliveroo’s funding 
alone contributes to most of the total 
investment. We have to question whether 
there has really been growth of investment 
in this area, or whether a single company is 
the force behind the increase in investment 
we’ve seen from 2016.
Another	interesting	difference	observed	in	
2017 was the stage of business evolution 
in which investors contributed funding. 
In 2016, 53% of food outlet businesses 
receiving funding were at seed stage 
and 30% at venture stage. This year, the 
numbers have evened out, with venture-
stage	firms	overtaking	seed-stage	firms	by	
one percentage point (43% to 42%). This 
difference	indicates	a	maturing	market,	
which is a promising sign. 
geography
As expected, London is the hub for 
investment in the food industry – to the 
extent that little to no investment occurred 
elsewhere. What’s surprising is that the 
next	most-funded	region	is	Yorkshire	&	the	
Humber, traditionally neglected by private 
equity and venture capital in favour of the 
South East and other, less northerly areas.
the future is green
As shown in the sub-sector breakdown, 
there’s an abundance of health-focused 
restaurants receiving investment. This 
reflects	the	increasingly	health-conscious	
society we are living in, and the recent 
rise	of	veganism.	More	noticeable	on	the	
diagram is the prominence of mobile apps 
within the industry, and the various ways 
high-growth businesses are modelling their 
businesses around technology. 
As	with	other	industries,	2018	is	likely	
to see a rise in more tech-based food 
businesses. If the technological advances 
over the past few years are anything to 
go by, we can expect a wider breadth of 
app-based businesses in this industry, as 
well as more companies being added to 
the existing app sub-categories. Deliveroo’s 
success in 2017 may pave the way for 
increased investment in other upcoming 
technology-based food companies. 
Tom Dewhurst, founder and CEO of 
Ordoo,	commented	on	the	trend	—	“many	
large	corporates	such	as	McDonald’s,	
Starbucks, and Subway adopted digitial 
transformation strategies last year. This 
is changing customer expectations about 
personalisation, convenience, and industry 
standards.”
His company is behind a mobile app that 
allows customers to order and pay for 
food before arrival in a restaurant. What 
does the trend mean for companies like 
Ordoo?		“A	transformation	like	this	presents	
significant	opportunities	for	food	tech	
companies. Whilst it remains competitive, 
food and drink companies need to adopt 
leading technology to keep up.”
Change, then, is here to stay. We’ll see you 
at the bar.
Tanya Nyamadzawo
37 In Reviewtraditional restaurants
cafes and bakeries
farming
subscription box
collection
delivery
industry services
information
health-based
Racing for 
the exit
As deal sizes increase, fewer firms are being 
acquired or participating in IPOs. But is that 
a price worth paying for deeper and more 
patient pools of capital in the long run?
Henry Whorwood
40 ExitsCompany exits are revealing. It’s 
fascinating to see which companies 
succeed, which sectors are appealing 
to bigger businesses, and what returns 
investors can get. Only 6% of the 17,000+ 
companies tracked by Beauhurst have 
exited	to-date	(compared	with	8%	that	
have died), so no wonder we pay attention 
when an exit comes along.
But should we be so interested? The rising 
concern with and support for patient 
capital suggests that our desire for exits 
may have become problematic: our focus 
should be on getting the right kind of exit, 
at the right time, and at the right price for 
the entrepreneur and the economy. If we 
look at the data, we may already be seeing 
an	improvement.	Let’s	look	at	IPOs	first.
ipos
First	off,	it’s	important	to	say	that	it	may	
be wrong to think of an IPO as primarily 
an exit. Certainly founders and investors 
can realise some or all of their investment, 
but the IPO is usually also used to raise 
considerable further funding for the 
business. Depending on where the 
company lists, any substantial exit may be 
impossible because of a lack of liquidity, 
and, moreover, any substantial sale of the 
entrepreneur’s	stake	often	has	a	negative	
impact on the share price.
At any rate, IPOs remain rare for UK equity-
backed businesses despite improving 
overall quantities of listings on both LSE 
and	NASDAQ	in	2017.
 The end of exits? 
racing for the exit
41 Exitsnumber and total sale price of acquisitions 
number of and amount raised in ipos
2011
2012
2013
2014
2015
2016
2017
£1,144M
£689M
£703M
£279M
£90M
£42M
£13M
1
3
4
15
11
9
9
2011
2012
2013
2014
2015
2016
2017
£3,147M
£3,808M
£6,603M
£536M
£838M
£29M
£34M
9
20
27
74
114
148
140
42 ExitsThe number of IPOs completed by 
companies	in	receipt	of	equity	finance	
since 2011 follows the general pattern of 
listings on the LSE in general, except in 
2017. In 2017 the LSE saw growth in the 
number of listings whereas the number 
of UK equity-backed businesses listing 
fell. The LSE acknowledges that a larger 
number than ever before of its listings were 
international rather than by UK businesses.
In	2017	AIM	was	by	far	the	most	popular	
venue	for	listing,	followed	by	NASDAQ	and	
then	one	listing	on	the	LSE	Main	Board.	
Just as with equity deals, London has 
consolidated its dominance in IPOs; over 
half the IPOs in 2017 were completed by 
companies in London, whereas as recently 
as 2014 the East of England and the South 
East tied with London.
Over the period 2011 to 2017, pharma 
was by far the top sector for IPOs, and this 
trend persists when looking at 2017’s IPOs 
in isolation (NuCana, Nightstarx, Destiny 
Pharma, Fusion Antibodies). NuCana was 
the largest IPO in 2017 (£75m raised on 
the	NASDAQ).		Given	the	dominance	of	
the Life Sciences sector in the IPO stats, 
it’s not surprising that the top investor 
into companies that IPO’d in 2017 is 
Syncona Partners, the Wellcome Trust’s 
independent evergreen investment vehicle. 
On average the companies that IPO’d in 
2017 had raised £21.2m before listing.
acquisitions
Acquisitions of companies that have raised 
equity	financing	since	2011	peaked	in	2016.	
131 businesses exited by acquisition in 
2016; this fell to 125 in 2017. There was, 
however, only a decline in companies being 
acquired at the seed and venture stages. 
The number of growth stage exits increased 
from 65 to 67. 
London continues to dominate here with 
40% of the companies acquired in 2017 
coming from London, followed by the 
South East (13%), the East of England 
(9%) and  — interestingly — the North West 
(8%).		The	most	popular	target	sectors	
for acquisition were Internet platforms, 
Software-as-a-Service,	E-commerce,	Mobile	
apps and Pharmaceuticals.
The acquirers were mainly from the UK 
(62%); the next most likely geography 
was the US (21%) followed by France (3%) 
and Germany (2%). Within those from the 
UK,	38%	of	the	acquirers	were	based	in	
London, 16% in the South East, 14% in the 
North West and 10% in the South West. 
This means companies in the North West 
are	buying	more	than	they’re	selling.	ARM	
and Apple were the top acquirers over 
the period 2011 to 2017; in 2017 the most 
active were 1pm, GE Health Care and Sky 
who bought two companies apiece.
In 2017 the average sale price was £104m. 
The highest average sale price was in 
the Pharmaceuticals sector, followed by 
Outsourcing and shared services. The 
average age of the companies acquired in 
2017	was	just	over	fifteen	years.
The top investor into companies acquired 
in 2017 was BGF (with 5 in total). Of the 
companies that exited in this way, Hillary’s 
Blinds had raised the most external equity 
capital (£114m), followed by Shazam, who 
raised £90.1m. 
conclusions
Acquisitions at the seed and venture stages 
have fallen as the average investment size 
has risen. Equally,  fewer companies are 
IPO’ing as the average investment size 
rises. The top investor before acquisition 
was a fund with plenty of dry powder. All 
this suggests a deepening pool of capital 
that is giving companies longer runways. A 
deeper pool of capital doesn’t necessarily 
mean a patient pool of capital; but the 
patient undercurrents are there. Just look 
at	Sycona	and	BGF.	Maybe	it	is	time	we	
turned the problem on its head: rather than 
promoting patience, let’s tackle impatience 
— more on that over the coming months, 
watch this space.
43 In Review
Investors
in focus
As is becoming the norm, crowdfunding platforms 
have dominated 2017 by deal numbers. After a 
worrying dip last year, activity in the sector has 
made a recovery. Meanwhile in Scotland, angel 
networks continue to shine. 
46 Investors Top investors by UK deal numbers 
investors in focus
SEEDRS
CROWDCUBE
SCOTTISH
ENTERPRISE
SYNDICATE
ROOM
DEVELOPMENT 
BANK OF WALES
See
d
Gro
wth
Ven
ture
38
58
70
133
144

47 Investorsled by the crowd 
Crowdfunding platforms lead the way on 
deal numbers, as has become tradition. 
What’s interesting is that Scottish 
Enterprise, which as the name suggests 
invests	almost	exclusively	in	Scottish	firms,	
manages to clinch third place – with the 
Development Bank of Wales coming a very 
respectable	fifth.	Both	administrations	are	
highly	active	in	supporting	young	firms.
company stages 
Although large amounts of cash are 
rarely seen at the seed stage, thanks to 
crowdfunders the number of seed-stage 
deals remains reasonably high. Syndicate 
Room is alone in funding more venture-
stage deals, thanks to its model in which 
the	crowd	contributes	only	after	validation	
by professional investors. BGF is the top 
investor in growth-stage companies.
BGF
ENTREPRENEUR
FIRST
MERCIA
TECHNOLOGIES
INNVOTEC LTD
ADVISORS
PARKWALK
37
34
34
33
26
48 In Review1
12
2017 angel  
network deals
49 InvestorsScotland performed exceptionally last 
year, due in no small part to its host of 
angel networks. Angels and angel networks 
have always been particularly strong 
in Scotland, and in 2017 a throng of 12 
contributed to 33 deals worth almost £24m 
over 2017, meaning that angels made 
up 27% of all Scottish deals (although 
just 7.6% of the amount invested). Even 
more remarkably, deals in Scotland made 
up nearly 24% of all UK angel deals – 
compared to just 5.9% of UK deals with 
private equity or venture capital backing. 
It’s interesting to see that angel deals 
have not been dented by the ascent of 
crowdfunding. It’s also looking increasingly 
like crowdfunding has found its niche in 
slightly larger deals than angels are used 
to: whilst angel investment has stayed 
relatively stable since 2015, crowdfunding 
has begun to decline in the <£500k bracket, 
increasingly concentrated at a higher level 
of investment. This is a good sign for young 
firms.	Diversity	of	investment	sources	
means startups have a better chance of 
finding	a	partner	that	suits	their	needs.
 Angels flock to Scotland 
investors in focus
angel networks and crowdfunding deals
2011
2012
2013
2014
2015
2016
2017
UNDER £499K
OVER £500K
0
50
100
150
200
0
50
100
150
200
Angel Network
Crowdfunding
2011
2012
2013
2014
2015
2016
2017
50 Investorscrowdcube
£87.3m
133 deals
seedrs
£55.1m
144 deals
syndicate
room
£39.5m
58	deals
venture 
founders
£32.9m 
21 deals
 Crowdfunding in 2017 
investors in focus
a year of recovery?
After	deal	numbers	fell	for	the	first	time	
last year, we feared we had seen the end 
of crowdfunding’s meteoric rise in early-
stage business funding. This year, however, 
activity has bounced back, especially 
towards the end of the year. 
the major platforms
Crowdcube was the top-ranked platform 
by amount of investment facilitated, whilst 
Seedrs participated in more deals. Seedrs’ 
deal numbers include pre-emption rounds 
which,	though	beneficial	to	shareholders,	
represent small contributions to rounds 
which were already completed. Notably, 
both SyndicateRoom and VentureFounders 
were involved in deals that were on 
average larger than those of their more 
active competitors. 
major crowdfunding platforms, 2017
crowdfunding over 2017
Q1
Q2
Q3
Q4
78
82
88
112
£39.9m
£55.2m
£53.8m
£68.8
Amount invested
Number of deals
Pre-emption or fund campaign
51 In Review2017 crowdfunding  
deals by region
Nor
th E
ast
Sco
tlan
d
Nor
th W
est
Wa
les
We
st M
idla
nds
Eas
t Mi
dla
nds
Nor
the
rn I
rela
nd
Yor
ksh
ire 
& H
um
ber
side
Sou
th W
est
Sou
th E
ast
Eas
t of
 En
glan
d
Lon
don
49
23
199
4
5
30
9
13
1
12
11
4
The big 
picture
Brexit fears are faced down by a government 
whose focus is growth. But what do 2017’s policy 
changes hold for the high-growth ecosystem?  
We take a look at the year’s developments.
Henry Whorwood
54 Big pictureWith	Brexit	now	18	months	behind	us,	it’s	
a good opportunity to take stock of its 
effects.	Many	in	the	business	community	
were not optimistic, with the CBI warning 
of a ‘serious economic shock’ if the 
UK voted to leave. Beauhurst’s own 
research found more positivity amongst 
entrepreneurs, with 74% expecting revenue 
growth of above 20% in the course of the 
year (EY Fast Growth Tracker 2017).
2017’s stellar performance assuaged many 
fears. That’s not to say it’s been a perfectly 
smooth ride in terms of policy. 
business rates controversy
One of the largest and most persistent 
controversies centred on business rates.
As of April, business rates were set to stop 
using	property	valuations	from	2008	and	
begin using those from 2015. But in those 
seven years, most London properties rose 
steeply in value, whereas those in the 
North	and	Midlands	tended	to	decline.
The state increasing its reliance on income 
from London was not generally popular – 
and Londoners didn’t much like it, either. 
As such, business leaders and industry 
bodies lobbied hard in favour of relief. 
This led to Philip Hammond capping the 
rates	rise	for	small	businesses	in	his	first	
Budget, and granting councils some £300m 
of discretionary spend to go towards rates 
relief. 
It	wasn’t	enough.	Many	business	owners	
remained frustrated, and conciliatory 
measures (the postponement of quarterly 
reporting	for	firms	below	the	VAT	
threshold,	simplification	of	R&D	tax	relief)	
did	not	calm	fears	that	May’s	government	
was becoming hostile towards commerce.
These turned out to be somewhat 
unfounded. The Coalition had hammered 
down corporation tax – from a massive 
30% just ten years ago – and Hammond 
last year cut it further to 19%, with the rate 
set to drop another two percentage points 
by the end of the decade.
the industrial strategy
The Industrial Strategy, nonetheless, 
marked something of a sea change in the 
business community’s attitude. Whilst not 
conservative	in	terms	of	fiscal	policy,	BEIS’	
landmark proposals were received warmly 
across the board.
At Beauhurst we were pleased to see 
almost £100m announced for earmarked 
Innovate UK projects, alongside further 
commitment to innovation in the form 
of UKRI, which unites Innovate UK and 
the Research Councils. UKRI is now set to 
invest	around	£8bn	per	year	in	the	highest-
quality innovation and research across the 
country.
patient capital and local deals 
The Patient Capital Review marked a 
turning point for the prospects of high-
growth	firms,	with	some	of	its	conclusions	
already	taking	effect.	A	lack	of	funding	for	
scaling companies has been a problem for 
some years, so the news that the British 
Business Bank is to incubate a new, £2.5bn 
investment fund was welcome.
As discussed in this report’s review of 
2017, data suggests that regions outside 
London are failing to deliver the rapid 
 A strategy for growth  
the big picture
55 In Reviewgrowth familiar to the capital. Furthermore, 
local governments have moved away 
from taking equity stakes in young 
firms.	It’s	pleasing,	then,	to	see	renewed	
commitment to LEPs and Growth Hubs 
in the form of additional funding, novel 
programmes, and further incentives for 
third- or private-sector bodies to partner 
with high-growth companies.
With EU negotiations continuing 
indefinitely,	there’s	no	shortage	of	
challenges for the high-growth economy in 
2018.	We	look	forward	to	seeing	ambitious	
firms	rise	to	meet	them.	
We were pleased 
to see almost £100 
million announced 
for Innovate UK 
projects, along 
with commitment 
to innovation in 
the form of UKRI.
“
56 Our data Driven by our platform 
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Beauhurst — the best way to discover, track and 
understand high-growth businesses. 
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60 In ReviewEditor 
Ella Halmari
Contributors 
Eleanor Sharman, Henry Whorwood, Jake Ford,  Tanya Nyamadzawo,  
 
Ester Simoes, Daniel Osei, Thomas Sheils
© Beauhurst 2017