Shifting sands: the changing nature of the early stage venture capital market in the UK

Pierrakis, Yannis and Mason, Colin (2008) Shifting sands: the changing nature of the early stage venture capital market in the UK. Discussion paper. Nesta. (http://www.nesta.org.uk/library/documents/Report%2...)

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Abstract

The UK early-stage venture capital market is currently experiencing major changes. With private funds - once the bedrock of start-up investment for entrepreneurs - moving away from the early stage, it is not just entrepreneurs but the economy as a whole that will be affected. The shift comes at a time when there is real pressure for the UK to build great global companies to match those of the US, India and China as well as a harsher environment in which to start a new business. But as long as investors continue drifting away from the smaller deals that new firms depend upon, many businesses will struggle to get a foothold.