Latest British Business Bank market research finds that higher company valuations, combined with strong exit activity in 2020 and 2021, has contributed to a material uplift in venture capital (VC) financial returns since the Bank’s last published report.

According to the Bank’s latest report, UK Venture Capital Financial Returns 2021, UK VC funds with a 2008 to 2013 vintage have seen an increase in their pooled Distributions to Paid In Capital (DPI)[1] multiples of 0.26 points, from 0.79 in 2020 to 1.05 in 2021. Over the same time period, their pooled Total Value to Paid In Capital (TVPI)[2] multiple has increased by 0.28 points, from 1.81 to 2.09 in 2021. UK venture capital has also performed strongly over the longer term, with pooled TVPI multiples above 2 for most two-year periods since 2002.