Investors Shouldn’t Fear Slow Years, Says British Patient Capital MD
According to Ian Connatty, an investment executive at British Patient Capital, stats in the tech funding world are not going to rise every year. Despite a decline in funding in the UK last year, Connatty reassures investors that numbers fluctuate and that it’s a natural part of the investment cycle. British Patient Capital takes a long-term approach, with companies typically staying in their portfolio for over a decade.
While there was a significant drop in VC funding in the UK in 2022, Connatty attributes this to outliers in previous years where investment levels were exceptionally high due to record-low interest rates. As interest rates rose, capital flow into startups slowed down. However, the UK still remains a top-funded tech industry in Europe, with strong investment performance over a broader time frame.
Connatty acknowledges that macroeconomic conditions have led to investor caution, but he believes there are still plenty of opportunities for investors. He specifically mentions the growing interest in AI, highlighting that the winner use cases are yet to be fully realized. Despite financial caution, there is still a willingness to explore speculative technologies like AI.
Overall, Connatty’s message is clear: slow years in funding should not deter investors, as the tech industry is constantly evolving and presenting new opportunities for growth and innovation.
