The UK-based startups managed to raise $5.1 billion venture capital (VC) funding during January to April 2023, which is 53.2% less compared to $10.8 billion raised during the same period the previous year, reveals GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database reveals that a total of 471 VC funding deals were announced in the UK during January to April 2023. This represents a decline of 29.4% compared to the announcement of 667 VC deals during January to April 2022.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “VC funding activity in the UK took a hit in 2023 in line with the global trend with decline experienced in terms of both volume as well as value. However, the decline was prominent in terms of value, which indicates the growing investor cautiousness amid the volatile market conditions.”

However, despite the decline, the UK continues to be the top Europe market for VC funding activity and ranks among the top five markets globally in terms of both deals volume and value.

The UK accounted for 6.7% of the total number of VC deals announced globally during January-October 2023 while its share of the corresponding deal value stood at 6%.

Bose adds: “The UK is yet to see the announcement of a billion-dollar VC deal* in 2023, which suggests that investors are averse to committing big-ticket deals. Nevertheless, GlobalData found VC investors participating in some $100 million+ funding rounds.”

Some of the notable VC funding deals announced in the UK during January-October 2023 include $602 million fundraising by Abound, $250 million fundraising by EToro, and $140 million fundraising by Oxbotica.

*Valued more than or equal to $1 billion