Two British venture capital firms, Par Equity and Praetura Ventures, are merging to create PXN Group, a £670m investment firm focused on opportunities outside London in the north of England, Scotland, and Northern Ireland.
Why it matters: The merger aims to close the regional funding gap in the UK, where London receives 51% of venture capital compared to a combined 20% for Scotland, Northern Ireland, and the north of England, despite having strong research institutions and universities.
The details:
- The deal is subject to regulatory approval and will see Par Equity and Praetura Ventures continue to run their respective funds, which can write tickets ranging from £200,000 to £8m.
- There are currently no plans for PXN Group to raise a fund of its own, but future funds could be branded as PXN Group products.
- Par Equity focuses on early-stage B2B investments in healthtech, climate tech, and industrial tech, while Praetura Ventures focuses on SaaS, fintech, and healthtech businesses.
- Limited Partners (LPs) across the two firms’ funds had to consent to the change of control for the merger to proceed.
What they’re saying:
- “I think being subscale is not necessarily a great place to be within venture,” says Dave Foreman, founder of Praetura Ventures and the new CEO of PXN Group. “There are opportunities for a business with significantly more scale and more assets under management.”
- “The north of the UK is underserved in terms of funding, despite having strong research institutions and universities, particularly in areas like data, AI, and industrial tech,” emphasizes Paul Munn, founder of Par Equity and new executive chair of PXN Group.
What’s next: The merger is pending regulatory clearance from the Financial Conduct Authority. By teaming up, Par Equity and Praetura Ventures aim to leverage their combined resources to foster growth and innovation in underserved regions of the UK.
