TLDR:
- Investment in UK start-ups fell to $21.3 billion in 2023, down from $31.3 billion in 2022 and a little over half the peak fundraising in 2021, according to a report by HSBC Innovation Banking and Dealroom.
- Venture capital flows globally have shrunk as higher interest rates have raised the cost of borrowing and reduced investors’ appetite for risky investments.
- However, there are signs of a tentative recovery for UK VC investment, with companies raising $12.6 billion in the second half of 2023.
