
Slump in investor confidence
Confidence levels of mid-market VCs have dropped, according to a survey conducted by Grant Thornton Corporate Finance. In the first quarter of the year, almost all VCs in the survey predicted that the volume and value of deals would remain stable or increase over the course of the year. However, during the second quarter, only 70% thought the number of deals would increase or remain level and only 65% thought deal values would increase or remain the same. In terms of deal volumes, 30% expect the number of deals to decrease over the next twelve months, while in the first quarter only 2% of the survey's respondents registered this opinion. In terms of deal values over the next twelve months, 35% of respondents expect a fall in market valuations, compared to just 5% in the first quarter. The survey also identified the most popular sectors for investment. The healthcare sector was considered the most popular by 22% of respondents while business services, usually the favourite, came in second.
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