A total of 1,709 venture capital (VC) funding deals were announced in the UK during 2022 while the disclosed funding value of these deals stood at $23.5 billion. This is a 24.3% decline in VC funding value compared to the previous year while deal volume also fell by 8.8%, according to GlobalData, a leading data and analytics company.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “In the wake of the macroeconomic challenges and prevailing geopolitical tensions in Europe, investors have become more cautious. This has impacted the VC funding activity in the UK, which happens to be the top market in the region.”

The UK also remains one of the top five markets globally, accounting for a 5.8% and 6.2% share of global VC funding value and volume in 2022, respectively.

Bose adds: “The slowdown was more of a global phenomenon in 2022 and was witnessed in several other top markets with the US, China and India also experiencing subdued VC funding activity.”

An analysis of GlobalData’s Financial Deals Database reveals that VC funding value in other key global markets such as the US, China and India also fell by 40.8%, 46.4% and 38.2% in 2022 compared to the previous year, respectively.