After Tuesday’s report that private equity investors will fall back in love with media deals in 2010, more data is showing a mixed recovery of sorts…
Investment advisory firm Ascendant says July-to-September investments in UK and Irish technology firms (£213 million) nearly matched the amount invested across the whole of January to September last year (£220 million). It’s forecasting £700 million will have been invested by year’s end, which it says is comparable to pre-recession 2006.
“We have strong anecdotal evidence that investors are being swamped with new deals and so the outlook for Q4 is promising,” says Ascendant MD Stuart McKnight.
But there’s a little more to it – while amounts invested are up, the number of investments is still down on 2008 levels…
… So fewer companies are taking more of the money. Despite 10 new funds being opened totalling £850 million, the cash is being given “at a very cautious pace”, McKnight adds.
And, within technology, the internet and wireless services sector specifically is faring less well, amounts dropping to £31 million in Q3 from £56 million in Q2. The biggest deals – Ocado (£12 million) and Livebookings (£10 million). Tech is being buoyed by cleantech investments.