The UK remains Europe's top destination for startup investment, attracting nearly as much investment as Germany and France combined. Most of the venture capital funding came from foreign investors. Despite a decrease in VC investments in London, there were significant increases in Cambridgeshire and Edinburgh. Globally, the UK ranks third in startup investment, behind the United States and China, but ahead of India.
Key takeaways:
- The UK fintech sector has reclaimed its position as the most funded startup sector in the country, raising $1.4 billion in Q1 2024.
- Despite a global downturn in fintech funding, the UK remains Europe's top destination for startup investment, attracting nearly as much investment as Germany and France combined.
- Most venture capital funding in the UK came from foreign investors (64%), marking a significant shift from a decade ago when local funds predominantly handled investments.
- While London continues to lead in VC investments in the UK, there has been a year-on-year decrease of 18%, with substantial increases in accumulated capital noted in Cambridgeshire and Edinburgh.