TLDR:
- VC investment into UK startups fell to its lowest level since 2018 in Q1 2024.
- Europe saw a rise in VC investment to $17.9 billion, driven by Sweden’s H2 Green Steel.
The Q1 2024 Venture Pulse Report for the UK revealed a significant decrease in VC investment into UK startups. The total funding raised fell to $3 billion, the lowest amount in twenty-two quarters, with deal volumes also dropping to levels not seen since 2016. Despite the decrease in deal volume, the sizes of deals remained healthy, with notable raises from companies like Monzo, Apollo Therapeutics, and GeoPura. B2B startups faced challenges as companies tightened budgets, affecting the interest of VC investors heading into Q2’24. The report highlighted a shift towards prioritizing routes to profitability and sustainable growth in the current economic environment. In Europe, VC investments rose to $17.9 billion, driven by a large raise from H2 Green Steel in Sweden. Deal volumes dropped in Europe, with a noticeable decline in Series D+ deals. The report emphasized the importance of investment in B2B startups with embedded technology solutions and the focus on investment corridors, particularly in the fintech sector.
