The UK startups secured $7.7 billion in venture capital (VC) funding during the first half (H1) of 2024, demonstrating a 2.8% year-on-year (YoY) increase in total value despite a 17.8% drop in deal volume. This divergence highlights a trend of selective investment, with significant backing for high-potential ventures. The substantial deals and investor enthusiasm suggest a promising outlook for the UK’s venture capital market, according to GlobalData a leading data and analytics company.
An analysis of GlobalData’s Deals Database revealed that a total of 725 VC deals of worth $7.5 billion were announced during H1 2023.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The decrease in VC deal volume has not affected the overall funding value, indicating that while VC firms are exercising caution, they are still willing to make significant investments in promising startups. This trend is also evident in other major markets, where total funding value has increased despite a drop in the number of deals.”
For instance, China, India and Germany saw their total VC funding value improve by 3.4%, 45.3% and 2.0%, respectively, whereas the deals volume fell by 16.2%, 2.1% and 32.8%, respectively, during H1 2024 compared to H1 2023.
Bose adds: “The improvement in terms of value registered in the UK could be attributed to announcement of some big-ticket deals during H1 2024. In fact, the UK was also among the very few countries that witnessed the announcement of some billion-dollar VC deals* during the review period.”
Some of the notable VC funding deals announced in the UK during H1 2024 include $1.05 billion worth of funding raised by Wayve Technologies, $1 billion raised by Abound, $431 million and $190 million worth of funding raised by Monzo in two separate funding rounds, $112 million funding raised by Exohood Labs, and $110 million funding raised by Skyports.
Apart from being the top European market, the UK is also a key global market for VC funding activity and stands among the top five in terms of both VC funding deal volume and value.
The UK accounted for 7.3% share of the total number of VC funding deals announced globally during H1 2024 while its share of the corresponding disclosed funding value stood at 6.2%.
Bose concludes: “The steady growth in VC funding value despite fewer deals highlights investor confidence. Significant investments in promising startups reflect cautious optimism. GlobalData anticipates sustained or increased funding, especially in innovative sectors, solidifying the UK’s position as a key global venture capital hub despite potential fluctuations in deal volume.”
