UK startups secured $7.7bn (£6.0bn) in venture capital (VC) funding during the first half of 2024, new figures published by GlobalData have revealed.

The figure represents a 2.8% year-on-year increase in total value, despite a 17.8% fall in the number of deals to 596.

By comparison, a total of 725 VC deals worth $7.5bn (£5.9bn) were announced during H1 2023.

Data and analytics group GlobalData said the divergence highlights a trend of “selective investment”, with significant backing for high-potential ventures.

The firm also stated that substantial deals and investor enthusiasm are suggesting a “promising outlook” for the UK’s VC market.

An analysis of GlobalData’s Deals Database revealed that a total of 725 VC deals of worth $7.5 billion were announced during H1 2023.

Lead analyst at GlobalData, Aurojyoti Bose, commened: “The decrease in VC deal volume has not affected the overall funding value, indicating that while VC firms are exercising caution, they are still willing to make significant investments in promising startups.

“This trend is also evident in other major markets, where total funding value has increased despite a drop in the number of deals.

“The improvement in terms of value registered in the UK could be attributed to announcement of some big-ticket deals during H1 2024. In fact, the UK was also among the very few countries that witnessed the announcement of some billion-dollar VC deals during the review period.”

Some of the notable VC funding deals announced in the UK during H1 this year included $1.05bn (£826m) worth of funding raised by Wayve Technologies, $1bn (£786.6m) raised by Abound, $431m (£339m) and $190m (£149.5m) worth of funding raised by Monzo in two separate funding rounds, $112m (£88.1m) funding raised by Exohood Labs, and $110m (£86.5m) funding raised by Skyports.

Apart from being the top European market, GlobalData suggested the UK is also a key global market for VC funding activity and stands among the top five in terms of both VC funding deal volume and value.

The UK accounted for 7.3% share of the total number of VC funding deals announced globally during H1 this year, while its share of the corresponding disclosed funding value stood at 6.2%.

Bose added: “The steady growth in VC funding value despite fewer deals highlights investor confidence. Significant investments in promising startups reflect cautious optimism.

“GlobalData anticipates sustained or increased funding, especially in innovative sectors, solidifying the UK’s position as a key global venture capital hub despite potential fluctuations in deal volume.”

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