Venture capital funding is driving a boom in the B2B sector, according to new research by investor intelligence firm Library House. A study of over 1000 private companies who have benefited from VC funding reveals that the top 20 fastest growing are dominated by B2B organisations.

Top of the list was Assima with a £9 million turnover in 2005, showing a 796 per cent increase. Inforsense also scored high with a 218 per cent increase. Specialist B2B agency Gyro International is the fastest growing marketing agency (101 per cent) and 16th overall fastest growing UK company (VC-backed).

The data has been compiled following the February launch of the Library House Private Company Intelligence database. This source requires a participating company to provide full-year figures from 2004-05 and have an annual turnover of above £1.5 million (due to representative percentage measurements).

The research has been collected over the last six months and is the first of its kind undertaken, utilising information collated over Library House's four-year history.

Company information is submitted on a voluntary basis, depending on the level of transparency the company in question wishes to emit.

Innovation is key

Library House sources the participating companies not on the basis of annual turnover, but on the basis of innovation. The search for these companies involves looking at Companies House information, the Internet (such as venture capital websites) and any locations where a concentration of companies can be found, eg. conferences.

The information is then provided to those parties interested in rapidly developing, upcoming companies, such as the investment community, for example venture capitalists, lawyers, banks and accountants.

Richard Youngman, vice president of research at Library House, comments: "This data is used as a mechanism of a way of learning about a set of companies and is used to gain a general picture of the state of venture capital funding in the UK."

He continues: "The 'hot' companies in particular sectors can be sourced and the data can therefore be used as a prospect tool and to identify a firm's growth trajectory."

Top of the B2B marketing tree

Gary Brine, founder and CEO of Gyro International, comments on the rating: "Gyro had a tremendous year in 2005. The company opened new offices in Dublin, New York and Hamburg, won significant amounts of new business from global players and consolidated its position as the fastest growing independent agency in the UK."

He continues: "The consistency of our company gives our staff a sense of belonging and the security that this consistency provides. Clients gain a greater feeling of security because staff believe in the value of this consistency. Organisational branding is vitally important and helps the company grow."

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