VC investment into UK businesses has continued to slump in the opening quarter of 2023. The ongoing economic conditions and challenges has made investors nervous, as they continue take a cautious approach to investments.
A total of $3.6 billion was raised by UK businesses in the opening three months of the year, continuing the significant slowdown seen in the end of 2022. Total VC investment in Q1 23 is the lowest raised by UK businesses in the opening quarter of a year since 2020 and significantly down on the $10.2 billion raised in Q121 and $15.2 billion raised in Q122. Deal volumes were also muted with just 402 deals completed, the lowest recorded in any quarter since the report began in 2014.
Two-thirds of VC investment ($2.4 billion) coming into UK businesses in the opening quarter of this year flowed into London, with more than half of the deals completed (219) by businesses being based in the capital.
