TLDR:
- The UK is the top destination in Europe for venture capital investment in the tech sector.
- UK tech companies raised £7.4bn in the first six months of 2024, surpassing France and Germany combined.
The UK has retained its position as the leading destination in Europe for venture capital investment in the tech sector. Data from Dealroom shows that UK start-ups and scale-ups raised £7.4bn in the first half of 2024, up 16% from the previous year. This accounted for nearly one-third of all venture capital funding in Europe during that period, surpassing other major European countries like France and Germany.
Several UK tech companies saw significant funding rounds, with Wayve, an autonomous vehicles technology firm, raising £861m in May. Other companies such as Abound, Highview Power, Monzo, and Char.gy also secured substantial funding during the first half of the year.
The second half of 2024 is expected to be strong as well, with Index Ventures raising $2.3bn in new funds to invest in start-ups, with a portion likely to be allocated to UK companies. Data indicates that tech companies specializing in energy and generative AI were among the top recipients of funding in Europe.
London continues to maintain its position as Europe’s leading center for tech investment, attracting more funding than major cities like Paris and Stockholm. Other UK cities like Cambridge, home to Arm Holdings, also saw substantial investment growth.
The figures offer hope for venture capital funding, which had declined in recent years. The UK has also surpassed India to become the world’s third-largest venture capital market, trailing only the US and China.
Despite recent political changes in the UK, the tech sector is looking for more supportive policies, especially in attracting skilled migrants to further bolster the country’s lead in tech innovation.
