And we all know how gloomy VCs have been lately.
But the Brits’ comparatively wary attitude to VCs is keeping them positive about the general fund-raising climate, according to Innovation Economy Outlook 2014 a report compiled by Silicon Valley Bank.
The report says that less than half of all UK tech start-ups use VC money, and the largest single source of start-up money in the UK is angel investment.
Whereas 41% of American high-tech execs raising money last year used angel investment, two thirds of UK tech execs who raised funding used angels.
“UK executives who successfully raised capital in 2013 are less likely than those in the United States to say the fundraising environment is extremely challenging,” says SVB, “and more likely to say it is either somewhat challenging or not very challenging.”
The other thing cheering up British execs is, believe it or not, our government. One in 10 UK execs who raised funds last year took money from the government, says SVB.