UK venture capital funding continued to drop in the third quarter of 2023 but there were signs of stabilisation following a challenging investment year.
VC firms invested $5.2bn (£4.3bn) in UK companies between July and September, a $400m decrease on the prior quarter, according to data published by professional services firm KPMG.
That marks a nearly 8% quarter-over-quarter drop as investors continue to rein funding following a year of economic turbulence stemming from interest rate rises, inflation and geopolitical turmoil.
Funding was spread across 713 deals, a 34% drop as larger deals prevented a larger decline in the overall investment.
The report cites a “bevy of larger VC investments” driving funding for the quarter. The largest of these is Birmingham-based autonomous vehicle startup Conigital’s £500m raise, which accounted for just over 10% of nationwide VC funding for the quarter....