UK venture capital (VC) investment dropped by 30% in 2022, with London continuing to attract the lion’s share of funding.
According to a report from professional services firm KPMG, UK businesses secured £22.7bn in VC funding last year. In the first half of 2022, the UK attracted £14.7bn of VC investment before taking a dive to £8bn in the second half.
The tech sectors that saw “strong activity” were sustainability, gaming, along with health and biotech. However, the report noted, buy now pay later (BNPL) “struggled”.
Warren Middleton, lead partner at KPMG, said: “VC investment into UK businesses remains well above pre-pandemic levels, and as we look ahead to 2023 it is likely that we’re about to enter a period of “new normal” in terms of valuations and M&A.”...