Parkwalk CEO calls for action after UK spin-out investment falls
- On October 4, 2023
- By GrowthInvest Marketing
Moray Wright, CEO of Parkwalk, has called for action from government and UK investors, after data reveals challenging economic conditions have significantly impacted investment into cutting-edge UK companies.
A report published from Parkwalk, a UK investor into spin-outs, and analytics firm, Beauhurst, shows the total amount invested in UK spin-outs fell year-on-year in 2022, and looks set to fall again in 2023.
It is the first consecutive period of decline in over a decade of strong growth which has seen over £13 billion of investment secured by UK spin-outs.
It reflects testing economic conditions which have driven up the costs of borrowing and impacted investors’ risk appetite over the last 18 months.
Despite this, 2022 set a new record for the number of deals secured by UK spin-outs, at 414, just up on 2021 levels. Total funding raised during 2022 also remained well above pre-pandemic levels at £2.3 billion.
Moray Wright, CEO of Parkwalk said: “While global economic headwinds have impacted the performance of UK spin-outs, 2022’s record number of deals is a testament to world-leading innovation coming out of UK universities.
“Growing political support for unlocking for the full commercial potential of the UK’s science base, gives cause for optimism, but the job is not yet done.
“More must be done to encourage UK investors to back spin-outs, such as through the Enterprise Investment Scheme, to ensure more founders can access the funds needed to grow in the UK.
“I’m confident the spinout sector will continue to offer investors strong returns, whilst providing solutions to the greatest challenges facing us and future generations.”
Notably, levels of foreign investment into UK spin-outs during 2022/23 reached a new peak, with over 10% of total funding into UK spin-outs coming from foreign investors for the first time on record.
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