By Christophe95; cropped by Beyond My Ken (talk) 01:04, 6 April 2015 (UTC), via Wikimedia Commons
According to a new research, the 500 most successful startups created in the United Kingdom over the last six years have increased at an annual rate of 30 percent per year.
The analysis that was made by SyndicateRoom and Beauhurst reveals that the startups that went on to IPO increased at an even faster rate of 43 percent.
However, fintech companies were discovered to have sped ahead, having a compound annual growth rate that is calculated at 63 percent. One of the most high profile fintech firms, Transferwise, was discovered to be growing at a faster rate compared to any other startup at 183 percent per year.
On the other hand, edtech or education technology startups were discovered to be the worst performers with an average growth of only six percent.
Gonçalo de Vasconcelos, chief executive and co-founder of SyndicateRoom, stated: “This cohort was worth just shy of £1.6bn in 2011, grew to £8bn in 2016 and now, just one year later, I’m delighted it is valued at over £10bn.
“What’s more, the cohort has returned over £3.7bn to shareholders, demonstrating the long-term profitability of early-stage investing.”
14 percent or 73 of the startups exited via an M&A or an IPO, while the same number failed, 31 of them failed last year alone, emphasising the risk of early-stage investing.