2024年第三季度英国创新投资报告 -UK INNOVATION UPDATE Q3 2024

UKINNOVATIONUPDATE

Q32024

October2024Image:Flo

UKinnovation-Q32024

UKstartupsraised

$2.9BinfreshfundinginQ32024

InvestmentinUKstartupsslowedoverthesummerperiod,inlinewithglobalventurecapitaldynamics.

ButUKstartupsstillraised$2.9BoffreshcapitalinQ3,withthelargestsharebeingraisedatbreakoutstage,ofSeriesBandCrounds.

2024UKinvestmentisstilltrackinglargelyinlinewith2023todate.

UKleadsforFemtechandFintech

ThelargestfundingroundforaUKstartupinQ32024was

$200MraisedbyLondon-basedfemtechstartupFlo,whichsawitbecomeEuropeʼsfirst

femtechunicorn.

The$1BraisedbyUK

healthtechstartupsoverallinQ3catapultedthesectorintosecondplaceintermsoftotalfundingfortheyear.Fintechretainedthetopspotfor2024with$3.3Braised-$1Bmorethananyothersector.

UK-basedVCinvestorsontracktoraise

recordlevelsofdrypowder

UK-basedventurecapital

investorsareontracktoraise$12.2Binnewfundsin2024,beatingthepreviousrecordof$11.5Braisedin2021.

MajornewfundswereraisedbyestablishedinvestorsincludingIndexVentures,Atomicoand

BaldertonCapital,aswellas

newerentrantssuchasTaavetHinrikusʼsPlural,climate

venturebuilderClimate13,andUK-Ukrainiandiasporaseed

fund1991ventures.

UKremains#1techhubinEuropeby

venturecapitalraised

UKstartupshaveraisedalmostasmuchventurecapitalin2024asFranceandGermany

combined.

UKstartupshaveraised$12.4Binventurecapitalinthefirst

threequartersof2024.This

comparesto$6.7BforGermanyand$6.5BforFranceinthe

sameperiod.

Londonalonehasraisedmorethaneithercountry,with$8.7B.

Page/2Source:Dealroom.co

dealroom.co

“Weʼrepleasedtoshareourlatestquarterlyinnovationreport,in

partnershipwithDealroom,whichhighlightsencouragingsignsfortheUKʼsinnovationeconomy.DespiteatypicalseasonalslowdowninVCactivityoverthesummer,Q3stillsaw$2.9billionraisedbyUKstartups,andcontinuestotrackinlinewith2023.

“Howeveroverallinvestmentdoesnottellthefullstory.Lookingbeyondcloseddeals,thereport

revealsthatUK-basedventurecapitalinvestorsareontracktoraisearecord$12.2billionoffreshcapitalbytheendoftheyear-surpassingeventhelevelsseenattheheightofthepandemicboom.Thisdeeppoolofliquidityisasignofconfidencefromlong-terminvestorsinthestrengthofthe

domesticinnovationecosystemandsuggestsabuoyantoutlookfor2025andbeyond.

“In2024,topglobalfundshavebeenactivelyraisingcapitaltobedeployedinUKstart-upsand

scale-upsreadytoachievetheirnextphaseofgrowth.Encouragingly,thefactthatQ3fundingwasheavilyweightedtowardsdealsatthecriticalSeriesBandCʻbreakoutʼstages,suggeststhattheseglobalVCswillhavenoshortageofmature,high-growthbusinessestoinvestin.Theproportionofinbound,internationalinvestmentisatitshighestsince2021,whichunderscoresthestrengthofUKinnovationontheglobalstage.

SimonBumfrey

HeadofTechnologyandLifeSciences

“Otherhighlightsincludeastandoutquarterforhealthandlifesciencebusinesses.Companiesinthesesectorsattractedover$1billionoffundinginQ3,bringingthetotalto$2.3billionfortheyearandcementingitasoneoftheUKʼsfastestgrowingsectors.

“Lookingforward,theteamatHSBCInnovationBankingUKandIremainextremelypositiveaboutthefutureoftheUKʼsinnovationeconomy,andweareexcitedattheprospectofcontinuingto

partnerwithclientsandinvestorstofosterfurtherexpansionofthiskeyindustrysector.”

UKstartupsraised$2.9BinQ32024

GloballyventurecapitalhadaslowquarterinQ32024,its

slowestin

overfouryears

.

Mostoftheslowdowncamefromadropinmegaroundswhilstearlyandbreakoutstagewasfairlystable.

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UKVentureCapitalbystage

»viewonline

▊$0–1m(pre-seed)▊$1–4m(seed)▊$4–15m(seriesA)▊$15–40m(seriesB)▊$40–100m(seriesC)▊$100–250m(megarounds)▊$250m+(mega+)

dealroom.co

Source:Dealroom.co

MostUKventurecapitalinQ3wasraisedatbreakoutstage-SeriesBandC-withover$1Braised.

Latestage

▊$250m+

▊$100–250m

Breakoutstage

▊$40–100m(seriesC)▊$15–40m(seriesB)

Earlystage

▊$4–15m(seriesA)▊$1–4m(seed)

▊$0–1m(pre-seed)

Page/5Source:Dealroom.codealroom.co

UKventure

capitalis

currently

trackingroughlyinlinewith2023.

Page/6

UKVCinvestmentamountbymonth

»viewonline

2024

dealroom.co

Source:Dealroom.co

AmeliaAmour

PartneratAmadeusCapitalPartners

“WeʼveseenalotmoremomentumintheVCinvestment

marketin2024withcompaniessuchasPolyAI($50m),

Riverlane($75m)andConstructiveBio($58m)raisinggoodsizedroundstosupporttheirgrowth.

“Companieswithstrongtoplinegrowthathighmargins,orthosedevelopingproductsforlargenascentmarkets,suchasquantumcomputing,areattractinginterestfromoverseasinvestors.AIremainsasignificantinvestmentfocusareawithopportunitiesrangingfromenergyreductionsolutionsfordatacentres

throughtomodeloutputexplainabilityandproductivitytoolsbuiltontopofLLMs.”

ThebiggestUK

venturecapital

roundsinQ32024.

ThelargestroundinQ32024camefromFlo,newlymintedFemtech

unicorn.3ofthelargestroundswereinBiotech.

»seerounds

Femtech

London

$200M

SeriesC-July2024

VaccineBiotech

London

$100M

SeriesB-Sep2024

QuantumComputing

London

PayrollFintech

Andover

$120M

LateVC-Aug2024

Biotech

Manchester

$100M

SeriesH-Sep2024

Fintech

London

Biotech

London

MyricxBio

£90M

SeriesA-July2024

DigitalHealth

London

$80M

SeriesD-July2024

AIChatbots

London

FORM3

£59M$60M$60M

SeriesC-Aug2024SeriesC-Sep2024SeriesC-July2024

Page/8Source:Dealroom.co

dealroom.co

FintechistheUKʼsmost

funded

aggregatesectorin2024.Healthmovedinto

secondinQ3.

Nearly$1BwasraisedinQ3alonebyUKhealthtech

startups,drivenby

megaroundsforFloHealthandMyricxBio.

UKleadingindustriesforVCinvestmentin2024

»viewonline

Page/9

Source:Dealroom.co.Basedonfixed32-sectorDealroomtaxonomy.

dealroom.co

JulianSchoemig

CEOandco-founderofDiesta

“2024hasbeenanexcitingyearforDiesta.Wesecureda

seedextensionledbytopUSfintechinvestors,fuellingourgrowthintheinsurancepaymentsspace.

“Raisingcapitalintodayʼscautiousmarketcanbechallengingbutrewarding,

especiallywithinterestfromoverseasinvestorsandtherightpartner.Evenwithrecentfunding,cashflowmanagementremainscrucialaswebalanceproductdevelopmentandrevenuegrowth.Ontheclientside,theneedforcostreliefandfasterpaymentsalignswellwithcurrentmarketdynamics.Weʼreexcitedtoseewhattherestoftheyearholds.”

GenerativeAI

hasbeenthe

leadingsegmentin2024.

DeeptechandAI-adjacentindustriesalsofeature

heavily,including

autonomousmobility,energystorage,drugdiscoveryandsemiconductors.

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UKleadingsegmentsforVCinvestment,2024

»viewonline

I

Autonomouswooitity⃞

dealroom.co

Source:Dealroom.co.GranularcategorizationbasedonthousandsoftagsinDealroomtechtaxonomy.

“ForAIcompanieslikeours,2024hasbroughtasurge

ofinterest,makingfundraisingrelativelystraightforward.

“However,thisexperiencecontrastssharplywiththechallengesfacedbyfoundersinmoretraditionalventure-backedbusinesses.With

interestratesstartingtoeaseandpublicmarketvaluationsformid-captechstocksrising,weanticipatethatthispositivemomentumwillsooninfluenceprivatemarketsentiment.”

BarneyHussey-Yeo

Founder&CEOofCleo

UKventurecapitalbyinvestorsource

»viewonline

70%ofUKVC

hascomefromabroadin2024-thisisoneofthehighestsharestodate.

Page/13

Source:Dealroom.co.2024datatoendofQ2.

dealroom.co

RemusBrett

GeneralPartnerLocalGlobe&Latitude

“TheUKfintechsectorisback.Manyscaleups,havingemergedfromachallengingfundingmarketstrongerthanever,aremakinga

seriousdentinincumbentsʼmarketshare.Tide,forexample,nowboastsover10%oftheSMEbankingmarketandCuvvaunderwrites11%ofallnewUKcarinsurancepolicies.AnewgenerationofAI

nativestartupsisreshapingfintechfromconsumertoenterprisetransformation.

“Whileunicornshavelongexcitedinvestorswiththeirhopeandpromise,wearenowseeingagroupofgrowingtechandscience-backedcompanieswithannualrevenuesofmorethan$100mayear.These“Thorougbreds”arecreatingjobsanddrivinggrowthinourcountryʼseconomy.Withplentyofdrypowderattheir

disposal,investorsareentering2025readytosupportthenextgenerationof

innovativeUKtechcompanieswiththeattributestobecomenational,regional,andglobalchampions.”

Top10EuropeancountriesbyVCinvestmentin2024

»viewonline

TheUKremainsthe#1countryinEuropeby

VCinvestmentin2024.

TheUKhasraisednearlydoublethelevelof

investmentofbothGermanyandFrancein2024.

CountryVCinvestment

Page/15

Source:Dealroom.co

dealroom.co

CambridgeandOxfordstartupshaveraisedthemostnewventurecapitaloutside

ofLondonin2024.Edinburgh,ManchesterandNottinghamgrewbyover100%.

SustainableFood

HubVCinvestment2024YTDchangevs.2023

£14MSeriesA

NovelDrugs

Edinburgh

$100MSeriesH

Manchester

Nottingham

Cybersecurity

$25MGrowthEquityVC

Page/16

Source:Dealroom.co

dealroom.co

CumulativeUKUnicorns

TheUKhasnowcreated178

unicorns,with

eightadditionsin2024.

14havereached

decacornstatus

.

178Unicorns

Privateunicorns

(69)

Exitedunicorns

(110)

2024UKunicorns

IntraBio

PREQIN

滕EyeBio

»seeallUKunicorns

Page/17

Source:Dealroom.co

dealroom.co

Page/18dealroom.co

EuropeanFemtechRankingVCinvestedsince2019

TheUKisthe

undisputedleaderinEuropean

Femtech.

Newlymintedunicorn

Flo

Health

raiseda$200MroundinQ32024-the4thlargest

Femtechroundever,andtheonlyEuropeancompanytoraiseaFemtechmegaround.

TheUKisontrackforarecord

$12.2BinnewVCfundsraisedin2024.

Thisaddssignificantlytoavailabledrypowder,with$9Bannouncedsofarin2024.

Page/19

UKnewVCfundsraised

Mnewfundsraised⃞projection

$9B

dealroom.co

Source:Dealroom.co

LilyBussmann

HeadofStrategicCapital,OxfordScienceEnterprises

“Atamacrolevel,thingsarelookingupforUKventure.UKVCsareontracktoraiserecordlevelsofdrypowderin2024.Atthesame

time,thepercentageofventureinvestmentcomingfromtheUSisatanall-timehigh.

“Currently,foreverypoundUKventuresreceive,42pisbeinginvestedbyUS

firms,oftenmarketleaders.Despitethisencouragingmacrooutlook,thesituationbecomesmorecomplexonasector-by-sectorbasis.WhileVCsareincreasingly

vocalabouttheworldʼsʻturntowardsphysicalʼ—fromdefencetechand

semiconductorstoclimatetech—thenumberofinvestorstrulycapableof

diligencingandpricingdeeptechassetsatSeriesBandbeyondremainslimited.Thisstandsinstarkcontrasttosectorslikefintechorbiotech.However,theUKhasaonce-in-a-generationopportunitytoreplicateitsgloballyrecognizedbiotech

successindeeptech.Allthebuildingblocksarethere.”

ThebiggestUK

venturecapitalnewfundsin2024.

IndexVentures

London

BaldertonCapitalAtomico

LondonLondon

Baldeiai

atomico"

Thelargestnewfundin2024wasraisedbyIndexVentures:$2.3B.

Baldertonraisedtwofundsin2024,addinguptoacombined$1.3B.

»seenewfunds

$2.3B

July2024

NorthernPowerhouseInvestmentFund

Sheffield

£660M

March2024

$685M&$615MNov&Aug2024

CortenCapital

London

€680M

June2024

$754M&$485MAugust&Sept2024

Plural

London

€400M

January2024

Page/21Source:Dealroom.co

dealroom.co

Augustis

historicallythequietestmonthforventure

capitalintheUKandEurope

overall.

TransatlanticVCseasonality.Monthlyaverage=100

Page/22

Source:Dealroom.co.Numberofroundsover$1Mlastfiveyears

dealroom.co

Methodology.

Whatisastartup?

Companiesdesignedtogrowfast.Generally,suchcompaniesareVC-investablebusinesses.

Whenstartupsaresuccessful,theydevelopintoscaleups(>50people),grownups(>500people)andresultinbigcompanies.Onlycompaniesfoundedsince1990areincludedinthisreport.

Blogpost

»WhatisaStartup?

Whatisaunicorn?

Unicornsare(former)startupsthatareprivatelyvaluedatoverUS$1B,orhaveachieveda$1B+exitviapublicmarketorM&A.

Adecacornisaunicornthatisvaluedat$10B+.

Blogpost

»WhatisaUnicorn?

UnderlyingData

Dealroomʼsproprietarydatabaseandsoftwareaggregatedatafrommultiplesources:harvestingpublicinformation,user-submitteddataverified

byDealroom