TLDR: UK Small Business Equity Tracker
Key points:
- Investments in UK smaller firms decreased by 48% to £8.8 billion
- UK now ranks third in the world for venture capital, following the US and China
In the UK Small Business Equity Tracker for 2024, the British Business Bank reported a 48% decrease in investments in UK smaller firms, amounting to £8.8 billion, compared to 2022. The number of deals also declined by 25% to 2152. However, the UK has now secured the third position in the world for venture capital, displacing India. Between 2021 and 2023, UK companies raised £72 billion in VC investment, standing behind the US and China. The UK’s global share of venture funding has increased from 3.4% in 2014-2016 to 5.8% in 2021-2023. Specifically, the UK now attracts 11.3% of global Fintech investment, showing promising growth despite its size compared to other countries.
CEO Louis Taylor of the British Business Bank expressed optimism about the stability of equity markets for smaller firms. Managing Director Christine Hockley of British Patient Capital also noted the stabilization of the UK venture capital industry, recognizing opportunities to address sectors with lagging performance such as life sciences and Deeptech. Hockley emphasized the importance of investing in university spinouts to tap into potential startup clusters around UK universities.
