Venture Powerhouses Merge to Close Regional Funding Gap: Par Equity and Praetura Ventures Form PXN Group

A tectonic shift is taking place on the UK’s venture capital scene. In a bold move, two of the country’s investment heavyweights, Par Equity and Praetura Ventures, are merging to form PXN Group. The new entity controls a colossal £670m investment fund focused primarily on Northern England, Scotland, and Northern Ireland. The move is designed to address the significant regional funding gap in the UK.

Merger events are a rare occurrence within the venture capital industry. The last notable merger was when General Catalyst and La Famiglia combined forces back in 2023. With increasingly challenging economic climates and liquidity pressures, investment firms strive to reach their financial targets. It leads industry insiders to predict a rise in the number of such mergers. The driving force behind the merger is to achieve the scale necessary to thrive in today’s venture capital landscape.

The merger deal, pending regulatory approval, maintains the independent management of both Par Equity and Praetura Ventures respective funds. The Edinburgh and Manchester-based companies can issue investments ranging £200k- £8m finances from early-stage through to growth. Paul Munn, founder of Par Equity and the planned executive chair of PXN Group, affirms that nothing changes within the daily operations of the funds. Both companies will continue to pursue the same investment thesis, but with substantially more resources.

While UK’s venture capital funding scenery is predominantly focused on the capital, 51% of it resides in London while just roughly 20% goes for Scotland, Northern Ireland and Northern England. The new PXN Group aims to level this regional disparity and serve the underfunded Northern regions of the UK. By doing so, it paves the path for more innovative ventures to thrive outside the bustling capital.