GlobalData: UK sees 27.2% YoY drop in venture capital funding

GlobalData: UK sees 27.2% YoY drop in venture capital funding

September 26, 2023

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The UK witnessed 898 venture capital (VC) funding deals of worth $8.7 billion during January-August 2023. This represents a 27.2% drop in the volume compared to the same period in 2022.

Notably, the decline in terms of disclosed deal value was significantly steeper, registering at 52.6%, reveals GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database reveals that the UK saw the announcement of 1,233 VC funding deals during January-August 2022 while the disclosed value of these deals stood at $18.3 billion.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: 'There is a decline in both volume and value terms but the impact is more drastic on the latter. In fact, the total value reduced to more than half of where it stood during January-August 2022. This could be attributed to the macroeconomic challenges and the ongoing geopolitical tensions. The total funding value is yet to touch $10 billion mark even though eight months of the year have already passed.'

The UK, apart from being the top European market, also continues to remain among the top five global markets in terms of total VC funding deal volume as well as value. The UK accounted for 6.5% of the total number of VC deals announced globally during January-August 2023. Meanwhile, it’s share of the total disclosed funding value stood at 5.4%.

Some of the notable VC funding deals announced in the UK during January-August 2023 include $602 million raised by Abound, $250 million secured by Builder.ai, $250 million raised by EToro, $140 million raised by Oxbotica, $136 million worth of fundraising by Raylo Group and $100 million secured by ZYBER 365.

Bose concludes: 'While the decline in both volume and disclosed value may reflect macroeconomic challenges and geopolitical tensions, it is worth noting that the UK continues to hold a significant position in the global VC market. Despite the hurdles, the resilience of innovative companies securing substantial funding demonstrates the enduring appeal of the UK as a hub for innovation and investment.'

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