PLEXAL STARTUP TRACKER

We want to bring the facts to the table about how COVID-19 is affecting startups. So we’ve partnered with Beauhurst to analyse metrics that will tell us the true story.

We’ve looked at 30,000 startups and fast-growth businesses (companies that have attracted equity or venture debt funding).

From 23 March 2020 until 27 January 2021: all startups and fast-growth businesses

↓12%

decrease in the value of investment compared to the same period in 2019

£7,557m

how much investment has been raised by startups in the UK since lockdown began

1,599

the number of deals since the start of lockdown, which is 4% higher than the same period in 2019

£710m

the value of investment since 23 March 2020 going to startups that have never received investment before

↓44%

how much lower funding for startups raising investment for the first time is compared to the same period in 2019

358

the number of deals since the start of lockdown involving startups raising investment for the first time, which is 20% lower than the same period in 2019

1,910

the number of administration, dissolution and liquidation filings by companies in the UK since the UK’s first lockdown in 2020

From 23 March 2020 until 27 January 2021: cyber startups

↑50%

increase in the value of investment into cyber startups compared to the same period in 2019

£665m

how much investment has been raised by cyber startups in the UK since March 2020

↑57%

the percentage increase in the number of deals involving cyber startups since March 2020, compared to the same period in 2019

£11.9m

the value of investment since March 2020 raised by cyber startups that have never received investment before (this was across 13 deals)

↓96%

how much lower funding for cyber startups raising investment for the first time is compared to the same period in 2019 (when £265m was raised across nine deals)

25

the number of administration, dissolution and liquidation filings by startups and fast-growth startups in the UK’s cyber sector since since the UK’s first lockdown in 2020

Cybersecurity funding has been dominated by some large follow-on investments such as OneTrust (£224m), Snyk (£154m) and Privitar (£70m)

OUR TAKE ON THE STATS

We’ve been tracking investment activity since the start of lockdown, and we’ve seen a persistent trend: investment into early-stage startups is lower than for companies that have already been funded.

£7,557m has been raised since the start of the country’s first lockdown across sectors (a 12% decrease) and only £710m went to first-time raisers (a 44% decrease).

We also saw a record spike in dissolutions, liquidations and administrations in September 2020 as the true impact of the pandemic began to be felt. As of 27 January 2021, 1,910 startups have closed since the UK’s first lockdown in 2020.

In contrast the cybersecurity sector has seen a 50% increase in the value of investments and 25 cyber startups have closed since the UK’s first lockdown in 2020. However, this investment has been focused on a small number of firms that have received investment already, while early-stage cyber startups seeking investment for the first time raised £11.9m – which is 96% lower than in the same period the previous year.

READ MORE AND CONTACT US.

We’ve published a more detailed analysis of the state of startups on our news page. We’ve found that September saw a record number of administration, liquidation or dissolution filings – the highest monthly figure in 10 years.

We’ve also analysed our data on cybersecurity investment trends. While investors are willing to back cyber startups with a proven track record, it’s a more challenging environment for companies raising for the first time.

If you’ve got any media enquiries or would like to learn more about our data and insights from our startup community, contact us on communications@plexal.com

OUR DATA IS POWERED BY: