TLDR:
- Venture capital investment in the UK hit its lowest point since the early stages of the Covid-19 pandemic in the first quarter of this year.
- Start-ups raised $3.9 billion in the three months to March, compared to $4.8 billion the previous year.
Article Summary:
Venture capital investment in the UK experienced a significant decline in the first quarter of 2024, marking the lowest level since the beginning of the Covid-19 pandemic. According to an HSBC Innovation Banking and Dealroom report, start-ups in the UK raised $3.9 billion in the first three months of the year, a drop from $4.8 billion in the same period last year. This decrease has been attributed to a combination of factors, including global economic instability and high-interest rates impacting investor sentiment.
Monzo, a leading UK fintech company, attracted the most funding in the first quarter, receiving $1.4 billion. However, only 36% of the total investment came from domestic investors, highlighting a need for reforms to encourage more UK-based funding. Despite a surge in venture capital investment during the later stages of the pandemic, the trend has since reversed, leading to concerns about the future growth of the sector.
