UK-based startups raised $9bn (£6.8bn) in funding through 704 venture capital (VC) deals between January and July this year.

Figures published by GlobalData revealed this was a 7.9% year-on-year increase in funding value, despite a 14.3% decline in deal volume.

GlobalData said the latest data reflects an “improving appetite” for big-ticket investments in promising startups, positioning the UK as a “resilient market” in the global VC landscape.

The same period in 2023 saw a total 821 VC deals worth $8.4bn (£6.4bn) announced in the UK.

“The UK, apart from being the top European market, also stands among the top five in terms of both VC funding deal volume and value,” commented lead analyst at GlobalData, Aurojyoti Bose.

“The increase in funding value, despite a notable decline in deal volume, reflects the growing appetite of VC firms for placing big bets in promising startups, coupled with a cautious approach. Notably, the UK was also among the very few countries to see the announcement of billion-dollar VC deals during the review period.”

GlobalData’s figures showed that the UK accounted for 7.3% share of the total number of VC deals announced globally between January and July, while its share of the corresponding disclosed funding value stood at 6.2%.

Some of the notable VC funding deals announced so far this year include $1.05bn (£799m) worth of funding raised by Wayve Technologies, $1bn (£760.9m) raised by credit technology company Abound, $200m (£152.1m) raised by DNEG Group and $431m (£328m) and $190m (£144.6m) raised by digital bank Monzo in two different funding rounds.

“These significant investments demonstrate the shift in focus of VC firms towards tech startups, driving both innovation and economic growth,” Bose added.

“As the country’s technology sector continues to attract global attention, GlobalData anticipates sustained momentum in VC activity, further solidifying the UK’s status as a global hub for entrepreneurial success and technological advancement.”

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