Research: Technology, Online Investment Recovery Continued In Q2

Just as figures from Calibre One and our own H109 VC-spend-tracker showed a slight recovery in technology and online company investment in Q209, figures from investment advisors Ascendant confirm the trend. Ascendant tells us that Q2 saw £129 million spent on 42 deals — a 25.8 percent decline on Q208, but an 11.63 percent improvement on Q109’s £114 million.

Internet and wireless companies accounted for £56 million of spending in Q2. The figures cover UK and Ireland and only deals over £500,000 were counted.

Ascendant’s total for the year to date is £244 million in 90 deals, a 56.2 percent drop on the £557 million129 companies received in the same period last year. For Ascendant the market hasn’t quite collapsed, but the “big end” of large scale deals has slowed: there was a 61 percent drop in the number of deals over £5 million in H109, but only a nine percent drop in deals under £5 million.

Ascendant’s chart of quarterly investment spend estimates since 2005 shows (see the image above) there are reasons to be cheerful: based on past market behaviour we’re due an upswing in Q3 and Q4.

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