A second survey of VC fund managers undertaken by Capital for Enterprise – now part of the British Business Bank.
The survey was designed to gauge the views of fund managers involving public funding on a variety of topics including the quality of investment opportunities available, the appetite of investors to invest in VC funds, and the opportunities for successfully exiting portfolio companies. The research finds:
– The majority of fund managers believe an equity gap exists, although there are some uncertainties on the exact boundaries of the gap. However, the majority of fund managers estimate the upper boundary of the equity gap is now £3m or above.
– The current environment for new investment opportunities is good and over half of fund managers expect to make more investments in the next 12 months than they did in 2012.
However, other areas of the market are less positive. The majority of fund managers perceive it is difficult or very difficult to find co-investors to syndicate with, and the environment for exiting portfolio companies is also perceived to be very difficult. The majority of fund managers also report it is difficult to raise new funds.