UK Future Fund Pie

Morning all,

I thought I would start a thread, to gather ideas of stocks to put into a regular UK Growth Companies pie.

A bit of background as taken from here:

  • Equity finance in UK smaller companies reached record levels in 2020. Equity investment reached £8.8bn – up 9% on 2019 despite the Covid-19 pandemic. The number of deals also increased by 5% to 2,044.
  • Investment in UK deep tech companies has continued to grow rapidly in the past five years, rising 291% to £2.3bn in 2020
  • The number of deals also increased by 78% to 440 in the same period. This is higher than the increases seen in the number of deals in the US and rest of Europe – 66% in the US and 73% in the rest of Europe.
  • While overall investment in the UK has grown, UK deep tech companies are still lagging behind the US. UK deep tech companies receive substantially smaller rounds of funding than the US. The average UK deep tech company raises £24m after six rounds of funding, compared to the £113m raised by the average US deep tech company after six rounds.
  • Levels of investment vary widely by industry, with the UK’s thriving tech sector remaining the most attractive to investors and accounting for 46% of total equity investment in UK smaller businesses in 2020. Investment into smaller UK tech businesses increased 7% to £4bn.

So looking for small to medium sized companies listed in the UK available on 212, that have the potential for multiples of growth.

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A good starting could be the holdings of some of the main funds and trusts in this space, which you could then run through a screener. Some that jump to mind include the Unicorn AIM VCT, Marlborough Nano/micro, BlackRock Throgmorton, Aberforth and Henderson Smaller Cos.

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