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UK startup funding fell 19% in first quarter of 2024

Startup funding
Image credit: Arsenii Palivoda / Shutterstock

UK startup funding dropped by 19% in the first quarter of the year, with late-stage investments being hit the hardest, according to new data.

In its quarterly report on the UK tech industry, research firm Tracxn found British startups raised $2.5bn in the first quarter of 2024, compared with $3.09bn raised at the end of 2023.

The report also noted that startup funding was 18% lower than in the first quarter of 2023, suggesting tech’s funding slowdown is far from over.

According to Tracxn, the funding decline was most apparent in late-stage startups, which secured 33% less funding than in the last quarter of 2023.

Early-stage funding dropped by only 7% compared with the end of last year but was 24% down from the start of 2023.

There was, however, growth when looking specifically at seed investments, which were up 12% compared with the end of last year, though the $288m of seed funding raised in the UK is 27% less than seed funding at the start of 2023.

The top funding rounds from the start of the year include Monzo’s £340m fundraise in February and Flagstone’s £108m investment in March.

The UK, despite the funding slowdown, retained its status as the third most funded tech industry, behind China and the US.

Read more: UK tech funding roundup: This week’s deals from Oriole to Fieldwork Robotics