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UK venture capital volumes 'turning a corner', says report

After a sharp global pullback in venture capital from the second half of 2022, venture capital is now back above pre-pandemic levels in the UK

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Venture capital investors in the UK have more dry powder than ever before with over $25bn raised in the last three years, according to to new research.

Funds will likely continue to hike cash deployment into startups in 2024, HSBC Innovation Banking and Dealroom's report into the European VC landscape said.

Venture capital volumes have been hit globally by a pullback from investors since the second half of 2022, but venture capital is now back above pre-pandemic levels in the UK and growing again as of the second half of last year.

In 2023 as a whole nearly $22bn was raised driven by a robust early-stage investing ecosystem as well as some larger rounds.

“This data demonstrates a significant positive trajectory for the UK's innovation economy, despite what has been a challenging period globally. We should be proud of the resilience the UK innovation ecosystem has shown and should celebrate its commitment to solving some of our most intractable problems," Erin Platts, CEO of HSBC Innovation Banking UK said.

“We are hugely optimistic and excited about the ecosystem in 2024 and look forward to playing our part in fuelling this critical part of the UK’s economy,” Platts added.

The UK is the third largest tech ecosystem in the world and the top tech ecosystem in Europe, accounting for 40 per cent of the whole European market.

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