That’s nearly one-third of all venture capital funding (32%) in Europe this year (£23bn), according to new data released by Dealroom and is up 16% compared to the same time last year, demonstrating a strong return to growth for the UK tech ecosystem.
UK tech companies raised more than France and Germany combined (£6.8bn) and more than five times Switzerland (£1.25bn). This was largely driven by later-stage rounds in AI, Fintech and Energy, particularly Wayve’s £861m Series C round to develop embodied AI products for automated driving, while Monzo raised another late-stage round, following its £331m round in Q1 2024.
The top five UK investment rounds in Q2 2024 are:
• Wayve - £861mn
• Abound - £400mn
• Highview Power - £300mn
• Monzo Bank - £149mn
• Char.gy - £100mn
London investment is up 30% already in 2024 to £5.3bn, accounting for 71% of all the investment raised in the UK so far. This puts it ahead of Paris (£2.4bn) and Stockholm (£940mn).
Cambridge also made the top 10 European cities for funding, with £517mn raised by the city’s tech companies so far, up 83% on 2023’s figures. This included legal AI tech company Luminance who raised £31.3mn, whilst lithium-ion parts supplier Echion Technologies raised £29mn.
Across Europe, Generative AI had its strongest quarter on record with £2bn raised across multiple companies, whilst Energy continues to be the most funded sector in 2024, with £4.3bn billion raised in total.
So far this year, 1450 companies across Europe have raised £1.5bn in what is promising to be the third-most active year for VC investment in Europe ever, behind only 2021 and 2022.
Commenting Catherine Lenson, co-COO, Phoenix Court said, “UK tech is on course for one of its best ever years, having raised more than France and Germany combined in the first half of the year. As late-stage funding returns to Europe and in particular to New Palo Alto, the supercluster of innovation ecosystems, we're seeing a surge of thoroughbred companies—boasting strong revenues and incredible potential. Thoroughbreds like these - with revenues in excess of $100mn a year - are on track to become regional and global champions and investors are rightly seizing the opportunity to invest in them.”
