The UK and Europe have built some of the most vibrant technology ecosystems in the world.
But the number of companies operating between the traditional lines of a Series A, B, C, etc. investor or growth equity and private equity firms has also increased; they have specific situations and/or requirements for the capital, driving a growing interest in flexible capital solutions that can sit alongside, or act as an alternative to, more traditional equity solutions.
In the United States, that kind of capital has been available for more than a decade. Growth funds and hybrid investors routinely support founder-led businesses as they make the leap from strong regional players to global leaders. Europe is ten years behind.
The consequence is that many promising companies either sell early, raise capital at less favourable valuations, move abroad to access deeper capital markets, or slow their growth. For an ecosystem that aspires to create enduring global champions, this is a structural weakness….
