Valuations for tech companies have begun to fall in the UK, according to the head of the state-backed British Business Bank, which is preparing to use its funds to help support start-ups in the face of economic headwinds.
Equity investment into smaller UK businesses increased by 88 per cent to £18.1bn in 2021, according to a BBB report published on Wednesday, the highest recorded since it started tracking the data in 2011. Equity investment in small businesses in the first three months of 2022 was also the highest recorded in a quarter, at £7.6bn.
However, Catherine Lewis La Torre, acting BBB chief executive, said that “we can see valuations are coming off” when talking to company founders, even if this shift had not yet shown up in data.