Venture capital (VC) funding in the UK market recorded a year-on-year decline in deal volume by 12.6% in January, new figures from GlobalData have shown.

The data and analytics group also reported that the number of deals dropped from 87 last year to 76.

Despite this decrease in deal volume, the total funding value increased significantly by 43.5%, from $863.2m (£683.9m) in January last year to $1.2bn (£950.8m) in January this year.

Lead analyst at GlobalData, Aurojyoti Bose, said: “The notable rise in total funding value, despite a decline in deal volume, highlights a shift towards larger investments in the UK market. Furthermore, the UK has upheld its position as a prominent market in the global venture capital funding landscape.”

An analysis of GlobalData’s deals database revealed that the UK was among the top five markets globally for VC funding activity in terms both deal volume and value in January.

The UK accounted for 5.8% share of the total number of VC deals announced globally during, while its share of the corresponding funding value stood at 5%.

Some of the notable VC funding deals announced in the UK during January included the $411m (325.6m) fundraising by Verdiva Bio, $180m (£142.6m) funding in Synthesia, and $55m (£43.6m) worth of fundraising by Lindus Health.

Bose added: “The shift towards larger and more targeted investments signals that the UK VC funding landscape remains attractive. The increase in total funding value reflects a positive outlook for the UK startup ecosystem, underscoring the market's appeal for those looking to make significant investments in promising startups and innovative ventures.”

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