• 1000

Annual VC investment in the UK doubles previous high

Venture capital investment remained close to record levels with the swift pace of Q4’21, capping off what has been a banner year for the global venture capital market.

Global quarterly venture capital investment surpassed the US$150 billion mark in consecutive quarters this year, reaching $171 billion across 8,710 deals during Q4’21 – only slightly below the previous high of $180 billion on 9,953 deals achieved in Q3’21. 

Nine $1 billion+ megadeals by companies in the US and Asia helped drive the surge – contributing over $13.5 billion to the quarterly global investment total – including funding rounds of $2.5 billion raise by Jakarta-based J&T Express, $1.8 billion by US-based Commonwealth Fusion Systems and $1.5 billion by US-based Gopuff and China-based Regor Therapeutics respectively.  

“ESG is definitely an area where investments are picking up in the UK. While we haven’t necessarily seen any massive deals in the space yet, there’s a lot of interest in the space –helped by the recent COP26 conference. The government has also introduced a lot of grants and programs specifically to help drive investment in areas around net zero.” – Warren Middleton, Lead Partner, Emerging Giants CoE, KPMG in the UK

A remarkable year

2021 was a remarkable year for the global venture capital market. The wealth of dry powder, combined with the continued involvement of non-traditional investors and powerful surge in exit activity, have combined to propel venture capital investment in companies across all sectors to new heights, albeit the larger organisations able to chart better performance, raised the bigger funds.

Connect with us

Save, Curate and Share

Save what resonates, curate a library of information, and share content with your network of contacts.

But what did VC investment look like in the UK in 2021?

  • The VC market saw a record high deal value and level of investment at $35.5 billion, over double the previous record high of $15.4 billion in 2020
  • Corporate Venture Capital (CVC) deal value is up by 55% in comparison to 2020 as disruptive technology tops all agendas
  • IPO activity was also up considerably during the year
  • Fintech & healthtech were particularly strong sectors of VC investment in the UK,  with healthtech players in the country growing faster than in many other jurisdictions.

Read more UK and global insights in the Global Venture Pulse Q4 2021 report.

Key contacts