UK venture capital performance increased sharply in the last year, as the value of funds’ investment picks appreciated almost in line with those of the US, according to research by British Business Bank (BBB) published today.
VC funds have seen their total value to paid-in (TVPI) multiple – the metric used to track the value of funds’ investment picks – increase by almost a third from 1.81 in 2020 to 2.09 in 2021.
And the pooled amount paid out to investors relative to the amount they’ve paid in to the funds – the distribution to paid-in capital (DPI) – increased from 0.79 in 2020 to 1.05 in 2021.
A combination of swelling company pre-money valuations and strong exit activity in 2020 and 2021 helped push up UK fund valuations, according to the research from BBB, the UK government’s economic development bank.
It’s also helped them keep pace with…
