The Small Business Equity Tracker 2018, a report released by British Business Bank, noted a year of growth in equity investment deals for small business.
Across private equity, venture capital, and crowdfunding platforms, the UK saw 596 equity deals in 2017. Specifically, equity crowdfunding deals rose 11% over the prior year to 350 deals.
Since 2011, the number of equity deals and value rose substantially.
The report goes on to evaluate geographic clusters, top investors, best deals, distribution of equity deals by type of investor, and other information related to equity investment.
Pitchbook, a provider of private equity, venture capital, and mergers and acquisitions research offers a look at activity in the 3rd quarter of 2018 in their benchmark data and venture monitor. Pitchbook’s benchmark data sets included financial returns on equity funds compared to other asset classes such as real estates, the S&P 500, and the Russell 3000. The venture monitor includes historical data related to deal flow, investment, location of investment, and other VC data.
In the United States, deal value continues to rise, especially compared to 2006-2008.
Equity Capital is Still Young
Equity Capital for privately held companies and small business is still a young sector of capital markets largely enabled by the Internet.
Crowdfunding will likely disrupt this form of capital as Internet-enabled portals, and a support ecosystem will allow investment outside of an investor’s geographical footprint. The above numbers reflect investments that are largely within a short geographic Radius of the deal.
What is the ceiling for capital markets for the privately held economy?
New equity capital markets formed in earnest in the latter half of the last decade. Currently, we see the beginning of mass adoption of this new capital in the form of venture capital and private equity. But many geographical regions across the United States and many firms are still locked out of capital.
We may only be at the start of new equity.