The United Kingdom has experienced a notable decrease in venture capital (VC) funding deals in 2023, says GlobalData.
A total of 1,260 VC funding deals were announced during the year, with a disclosed funding value of $14.2 billion. This represents a substantial decline of 28.4 percent in deal volume and 39.4 percent in funding value compared to the figures reported for 2022.
GlobalData’s analysis of its Deals Database reveals that in the preceding year, 2022, the UK saw a higher number of VC deals, with a total of 1,759, and a disclosed funding value of $23.4 billion.
The report highlights that it took nine months for the UK to reach the $10 billion funding mark in 2023, a significant contrast to the previous year when the same milestone was achieved in just four months.
Aurojyoti Bose, Lead Analyst at GlobalData, commented on the subdued activity, attributing it to a global phenomenon in 2023. The report suggests that factors such as macroeconomic challenges, volatile market conditions, and ongoing geopolitical tensions contributed to a dent in investor sentiments, thereby impacting VC funding activity on a global scale.
Despite the decline, the UK maintains its dominance in Europe and remains among the top five markets for VC funding activity in terms of both deal volume and value. The report indicates that the UK accounted for 6.5 percent of the total number of VC funding deals announced globally in 2023, with its share of the corresponding disclosed deal value standing at 6.1 percent.
Several notable funding deals were highlighted in the report, including Conigital securing $623 million, Abound raising $602 million, Spendology receiving $367.7 million, SumUp obtaining $306.5 million, EToro securing $250 million, and Builder.ai raising $250 million during the course of 2023.