UK venture capital investments plummet 43% in 2023
There was also a 25.9% decline in the number of deals, with only 1,005 deals announced over the period.
The firm's Financial Deals Database found that venture capital deals worth £10.9bn were announced over the first three quarters of this year, compared to £19.1bn during the same period last year.
There was also a 25.9% decline in the number of deals, with only 1,005 deals announced, against 1,356 in 2022.
Value of UK venture capital funding deals halves in 2023
Aurojyoti Bose, lead analyst at GlobalData, said the ongoing Russia-Ukraine war, inflation and other macroeconomic challenges have resulted in a «detrimental effect» on investor sentiment globally.
«The UK, which happens to be the top European market, is not immune to these challenges,» he said.
Despite the decline, the UK remains the top European market for VC funding activity and among the top five countries for deal volume and value.
The UK accounted for 6.6% share of the total number of VC deals and 5.9% share of the deal value announced globally during the first three quarters of 2023.
VCTs prove resilient against wider venture capital industry decline
Some of the notable VC deals announced in the UK during this period include $623m raised by AI driverless vehicle company Conigital, $602m raised by fintech firm Abound, $250m secured by app building platform Builder.ai and $250m raised by investing app EToro, among others.
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