UK technology investment dropped 22% this year, one of the steepest falls in Europe, amid difficult economic headwinds that have forced startups to slash valuations and make mass layoffs.
Overall UK tech investment fell to $27.9bn in 2022, down from the record $36bn raised last year. Despite the notable decline in tech investment, the UK continues to be a magnet for investment and remains Europe’s best-funded country, receiving 35% of all investment over the past five years.
France has taken the UK’s title as the third largest listed tech nation, with Britain moving down to fourth. The two countries combined are responsible for half of all European venture capital (VC).
Atomico’s State of European Tech 2022 report, an annual finger on the pulse of the industry, outlined a “year of two halves” as investment levels across Europe faced a reckoning from rising interest rates, soaring inflation and a looming recession....