Northern Tech Investment Q3 2017

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Northern Tech Investment Q3 2017

Want to know the status of investment in the north west?

  • In Q3, reported investment in Northern tech businesses doubled on Q2, with £208m invested.

• The largest investment was a minority stake purchase of The Hut Group by Old Mutual for £125m, which valued the business at £2.5bn. This substantial investment gives the company a war chest for acquisitions in Ecommerce. Since the investment, four acquisitions have been announced, two in the UK and two international.

• Another notable investment was a minority stake purchase in BluJay Solutions by Temasek. The investment size was not disclosed (and not included in our total), but was reported to have valued the business at more than £500m.

• Evidence of rising Northern tech investment is limited to a few headline grabbing ventures, yet Q3 has also seen the highest number of investments in a single quarter over the past 12 months.

• Excluding outlier investments, Software had the strongest quarter with £30.4m invested in 17 companies, closely followed by Internet and Media businesses with £29.2m invested in 13 companies.

• Overseas investment in UK tech has historically been London centric, but a number of recent investments highlight growing interest in the North from abroad, with funds flowing in from tech enterprises and financial investors across the US, Europe and Asia. A prime example is the recent £20.2m PushDoctor fundraise, which saw participation from Silicon Valley based Partech Ventures and Paris based Seventure Partners.

• Locally, the Northern Powerhouse Investment Fund made six Q3 investments amounting to £4.5m in Northern tech start-ups, including three in Yorkshire, two in the North West and one in the North East.

• There were 26 completed acquisitions in Q3 2017, a 79% increase on Q3 2016, suggesting continued confidence in the Northern tech sector as the impact of the Brexit vote continues to ripple through the marketplace.

Read the latest update from KMPG

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