UK’s Venture Capital Funding Sees a Dip in 2023

Amidst a dynamic economic landscape, the United Kingdom witnessed a notable decline in venture capital (VC) funding activity throughout January-November 2023, marking a significant setback compared to the previous year’s figures.
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Despite this downturn, the UK remains an alluring hub for VC investors, securing a prominent position among the top five global markets, as per insights from GlobalData.

According to analysis derived from GlobalData’s Financial Deals Database, the UK experienced a 26.9 percent decrease in deal volume, announcing a total of 1,199 VC funding deals worth $13.2 billion during January-November 2023, compared to the 1,641 deals disclosed in the same period of 2022.

Correspondingly, the disclosed funding value saw a substantial year-on-year decline of 40.5 percent, falling from $22.2 billion in January-November 2022 to $13.2 billion in the corresponding period of 2023.

Lead Analyst at GlobalData, Aurojyoti Bose, highlighted, “Global investor sentiments faced challenges in 2023, impacting VC funding activities globally, including the UK. However, despite this setback, the UK remains an attractive destination for VC investors, maintaining its stature as the top European market and securing a position among the top five global markets in both deal volume and value.”

The UK accounted for 6.5 percent of the total global VC funding volume during January-November 2023, while its share of disclosed funding value stood at 6 percent during the same period.

Bose further noted, “Notably, the UK witnessed several substantial VC deals surpassing the $100 million mark in January-November 2023.”

Among the noteworthy VC funding deals announced in the UK during this period were Conigital securing $623 million, Abound raising $602 million, Spendology securing $367.7 million, Builder.ai obtaining $250 million, EToro raising $250 million, Apollo Therapeutics receiving $226.5 million, and Castore securing $183.4 million in funding.

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