February 25th, 2021 / Insight posted in Articles

Growth Capital in the CreaTech Sector – a review of 2020

The impact of the Coronavirus has created difficulties for CreaTech businesses in the growth capital arena. In 2020, 114 CreaTech businesses raised a total of £501 million of growth equity capital, compared with 144 businesses raising £709 million in 2019 – a 21% year-on-year decline in the number of deals completing and a 29% decrease in the amount of funds raised. But we believe these difficulties will be overcome as CreaTech businesses resume operations in 2021.

“We remain bullish about the sector, and see the current challenges as short-term rather than structural,” says Paul Winterflood, Corporate Finance Partner at Moore Kingston Smith. “We are naturally cautious regarding the continuing economic impact of a Coronavirus resurgence. However, we are encouraged by the promise of fast-moving vaccination programmes which should eventually lead to a return to normal levels of activity.”

Read more in our report or contact us to find out how we can help you.