Between the second and third quarters of this year, the number of investment deals fell 18.2% in the UK, Beauhurst found in its latest market report. This was reflected in a 9.2% decline in the amount of money investors stumped up for tech firm deals overall.
There were 363 investment deals in the UK -- the lowest since the third quarter of 2014, according to the report. While both deal numbers and the overall UK investment number -- £1.84 billion during the third quarter -- fell, the average deal size rose by 15%, showing more money is being invested in fewer deals.
(Data source / image: Beauhurst)
The number of seed deals in this quarter fell below venture deals for the first time since the second quarter of 2012, indicating that investors are looking for safer investments in the current Brexit-influenced climate.
While the investment size fell, fintech -- generally one of the UK's strongest sectors -- continued to grow, with £309 million invested into the sector. This currently stands as a record for both fintech in the UK and individual sectors, within which fintech has held the lead in since 2013. The artificial intelligence sector had the second highest investment rate in Q3, although it fell substantially compared to Q2, while "proptech" (tech for the real estate industry) grew slightly and maintained third place.
Company CEO Nik Storonsky is convinced that his company is an acquisition target because of its ability to greatly speed up the time it takes to detect credit card theft and other types of financial fraud.