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Early stage venture capital funds have the potential to generate higher returns, finds latest research by the British Business Bank
Latest market analysis from the British Business Bank published today finds early stage venture capital funds have the potential to generate higher returns than later stage VC funds. Early stage VC funds generated a pooled Distributions to Paid In (DPI) multiple of 1.43 and pooled Total Value to Paid In (TVPI) multiple 1.99, which is 0.73 and 0.71 pp higher than later stage VC funds.
The new report, UK Venture Capital Financial Returns 2020, draws together data from existing data sources including PitchBook and Preqin, and from the Bank’s own programmes, as well as a new survey of fund managers, to provide as comprehensive a picture as possible of the asset class and its performance.
A survey of fund managers carried out specifically for the UK Venture Capital Financial Returns 2020 report found that fund managers are optimistic on deal flow, with all survey recipients rating deal flow as ‘good’ or ‘very good’. There are mixed views, however, on exit conditions (60% positive, 35% negative) and fundraising conditions (41% positive, 41% negative). The majority (86%) of fund managers have changed their investment process to adapt to Covid-19.
Other findings include:
- Funds located outside of the ‘Golden Triangle’ of London, Cambridge and Oxford show DPI of 1.65, 80pp higher than those based within (0.85). This is due to strong performance of a small number of high performing funds that have invested across the UK and in several unicorn businesses.
- UK VC funds with 2002-2007 vintage delivered good financial performance, with a positive DPI multiple of 1.61. These funds generated a pooled TVPI multiple of 1.99, showing the potential for further upside.
- More recent VC funds with a 2008-13 vintage generated a pooled TVPI multiple of 1.81, which suggests the future outlook for fund performance is good.
- British Business Bank-supported funds are largely performing in line with the wider VC market:
o British Patient Capital pooled DPI returns of 0.18 are slightly higher than the wider VC market for funds of the same vintage.
o While Enterprise Capital Fund DPI performance lags the market, the TVPI returns for other LP investors of 1.65 is equal for VC funds of the same vintage.
Alice Hu Wagner, MD for Strategy, Economics and Business Development at the British Business Bank, said: “This report provides the most thorough and robust view possible of the venture capital finance market for UK small businesses, drawing upon more sources than ever before.”
“It’s important for investors to know that early stage venture capital funds have the potential to generate high returns, as the early stages of the market are important for the health of the overall equity ecosystem, including later stages. It’s also encouraging that fund managers remain optimistic about market conditions”
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Worldline and ABN AMRO Extend Partnership to Support Payment Services in the Dutch Market
ABN AMRO and Worldline share a distinguished partnership built over decades. In recognition of this strong foundation and proven track record, Worldline will continue to enhance ABN AMRO’s customer payment solutions. This collaboration underscores the value both parties place in their long-term commitment to innovation and operational excellence.
RateGain and Juspay Partner to Power ‘RG Pay,’ a High-Performance Financial Technology Platform for the Global Travel and Hospitality Industry
RateGain Travel Technologies Limited (NSE: RATEGAIN), a global leader of AI-powered SaaS solutions for the travel and hospitality industry, and Juspay, a leading global payments technology company, today announced a strategic partnership to power RG Pay, RateGain’s embedded financial technology platform for the travel and hospitality ecosystem.
Travel Providers to Accept UnionPay Cards for Both Direct e-Commerce Bookings and Indirect Sales via Amadeus Travel Platform
According to ResearchAndMarkets’ recent forecasts, Chinese outbound travel is predicted to grow at a Compound Annual Growth Rate (CAGR) of 13.5%, increasing from $140B today to reach $386B by 2033. UnionPay International helps cardholders to easily make cross-border payments in 183 markets and its payment methods are particularly popular with travelers across Asia Pacific.
Creditinfo Brings Global Fraud and Identity Solution to Uganda to Strengthen AML and Financial Crime Defences
Creditinfo, a global service provider for credit information and risk management solutions, has announced the rollout of its identity, know your customer (KYC) and fraud and ID solution in Uganda. The move supports organisations in the country as they work to strengthen financial crime prevention at a time of rapid digital growth and evolving fraud risk.
BVI Financial Services Conference Examines Global Financial Crime Risks and Reaffirms BVI’s Commitment to Integrity
Government officials, regulators, law enforcement authorities and financial services professionals gathered at the BVI International Arbitration Centre on 5 March for the BVI Financial Services Conference 2026, an event examining the evolving global landscape of financial crime and the responsibilities of international financial centres in safeguarding the integrity of the global financial system.
Glia Launches Industry-First Contractual Guarantee Against AI Hallucinations and Prompt Injections
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Money20/20 Asia Report: APAC Fintech Ecosystem Shifts from Experimentation to Scale as AI and Digital Assets Drive Leadership
Money20/20, the world’s leading fintech show and the place where money does business, today unveiled its annual Future of Fintech in APAC report ahead of Money20/20 Asia happening in Bangkok on April 21-23 at the Queen Sirikit National Convention Center (QSNCC). The whitepaper is revealing that APAC’s fintech ecosystem has reached a pivotal inflection point. The region is shifting from experimentation to scaled deployment across AI, digital payments, and digital assets, marking a decisive move toward production‑grade innovation.
Worldline and ABN AMRO Extend Partnership to Support Payment Services in the Dutch Market
ABN AMRO and Worldline share a distinguished partnership built over decades. In recognition of this strong foundation and proven track record, Worldline will continue to enhance ABN AMRO’s customer payment solutions. This collaboration underscores the value both parties place in their long-term commitment to innovation and operational excellence.
RateGain and Juspay Partner to Power ‘RG Pay,’ a High-Performance Financial Technology Platform for the Global Travel and Hospitality Industry
RateGain Travel Technologies Limited (NSE: RATEGAIN), a global leader of AI-powered SaaS solutions for the travel and hospitality industry, and Juspay, a leading global payments technology company, today announced a strategic partnership to power RG Pay, RateGain’s embedded financial technology platform for the travel and hospitality ecosystem.
Travel Providers to Accept UnionPay Cards for Both Direct e-Commerce Bookings and Indirect Sales via Amadeus Travel Platform
According to ResearchAndMarkets’ recent forecasts, Chinese outbound travel is predicted to grow at a Compound Annual Growth Rate (CAGR) of 13.5%, increasing from $140B today to reach $386B by 2033. UnionPay International helps cardholders to easily make cross-border payments in 183 markets and its payment methods are particularly popular with travelers across Asia Pacific.
Creditinfo Brings Global Fraud and Identity Solution to Uganda to Strengthen AML and Financial Crime Defences
Creditinfo, a global service provider for credit information and risk management solutions, has announced the rollout of its identity, know your customer (KYC) and fraud and ID solution in Uganda. The move supports organisations in the country as they work to strengthen financial crime prevention at a time of rapid digital growth and evolving fraud risk.
BVI Financial Services Conference Examines Global Financial Crime Risks and Reaffirms BVI’s Commitment to Integrity
Government officials, regulators, law enforcement authorities and financial services professionals gathered at the BVI International Arbitration Centre on 5 March for the BVI Financial Services Conference 2026, an event examining the evolving global landscape of financial crime and the responsibilities of international financial centres in safeguarding the integrity of the global financial system.
Glia Launches Industry-First Contractual Guarantee Against AI Hallucinations and Prompt Injections
Glia, the leading platform for intelligent banking interactions, today announced it will offer its more than 700 bank and credit union clients a contractual guarantee against AI hallucinations being presented to customers or members on its Banking AI platform. Glia also now guarantees zero impact from prompt injection attacks on its platform — malicious attempts to trick customer or member care AI into providing information or performing tasks it shouldn’t.
Money20/20 Asia Report: APAC Fintech Ecosystem Shifts from Experimentation to Scale as AI and Digital Assets Drive Leadership
Money20/20, the world’s leading fintech show and the place where money does business, today unveiled its annual Future of Fintech in APAC report ahead of Money20/20 Asia happening in Bangkok on April 21-23 at the Queen Sirikit National Convention Center (QSNCC). The whitepaper is revealing that APAC’s fintech ecosystem has reached a pivotal inflection point. The region is shifting from experimentation to scaled deployment across AI, digital payments, and digital assets, marking a decisive move toward production‑grade innovation.