Money talks
HOW WERE GX COMPANIES FUNDED?
with average revenues
FUNDING DROPS BUT PRIVATE FIRMS HOLD STRONG
There was a slight drop this year in the number of GX companies that had received venture capital or private equity funding, from 47 to 41.
More noticeable was the fall in the total amounts involved. Of the 32 companies where we could verify fundraising, the total raised to date was $4.6bn, down from $13.1bn last year.
It’s tempting to ascribe this to the wider financial environment – UK VC fundraising fell 30% in 2022, according to KPMG, while EY found the value of London IPOs fell 90%.
There’s likely to be a simpler explanation: several large tech and fintech firms, which had attracted massive late-stage funding, fell out of the Growth Index 100 in 2023.
Even if the fundraising environment isn’t quite as strong as it was two years ago, this shouldn’t get us worried: fully half of the hyper-growth companies on our list earned their place without any form of equity fundraising, public or private.
