The majority of UK institutional investors who provide financial backing to VCs plan to increase their capital allocations in 2023, sending a signal to startups that there will still be sufficient funding despite market turbulence that has rocked the tech industry.
This year UK tech investment plummeted 22% as challenging economic headwinds brought a period of cheap capital and soaring valuations to an end.
Overall UK tech investment fell to $27.9bn in 2022, down from the record $36bn raised last year, according to Atomico’s State of European Tech 2022 report.
This has sparked concerns that startups will face a challenging funding environment next year.
However, a survey of 250 UK-based investment decision-makers at limited partners, family offices and asset managers – the institutions that supply capital to venture capitalists – has painted a different picture....