Tracxn, a global SaaS-based market intelligence platform, has released its Geo Semi-Annual Report: UK Tech H1 2024.
The report, based on Tracxn’s database, provides insights into the UK Tech space.
The UK is said to be “the second-highest funded tech startup ecosystem in H1 2024, after the US.”
The UK Tech space secured funding “worth $6.7 billion in H1 2024, only 2% lower than the $6.9 billion raised in the first half of 2023.”
However, this is said to be “a 12% drop from the $7.7 billion raised in H2 2023.”
Late-stage investments stood “at $3 billion in H1 2024, a 23% decline from $3.9 billion raised in the latter half of 2023 and a growth of more than 30% from the $2.3 billion raised in H1 2023.”
Seed-stage funding saw “a total funding of $540 million in H1 2024, a drop of 7% from $575 million raised in H2 2023 and a decline of 43% raised in H1 2023.”
Early-stage witnessed total funding “of $3.2 billion in H1 2024 and H2 2023, a 12% drop from $3.7 billion raised in H1 2023.”
This space has reportedly witnessed “twelve 100M+ funding rounds in H1 2024.”
Companies like Wayve, Abound and Monzo secured funding “above $600 million in this period.”
Wayve has notably raised “a total of $1.05 billion in a Series C round led by SoftBank Group, while Abound raised $862 million in a Series B round. Monzo raised $620 million via two Series I rounds.”
The quarter-wise comparison paints a promising picture, with funding “rising 27% to $4.41 billion in Q2 2024 from $3.47 billion in Q2 2023.”
This is also a 62% jump from “the $2.71 billion raised in Q1 2024.”
Mews was the only unicorn created “in H1 2024, compared with H1 2023 when two companies crossed the $1 billion valuation mark.”
Further, 195 companies were acquired “in H1 2024, a significant decline from 232 acquisitions in H1 2023, but an improvement from 190 acquisitions in H2 2023.”
Darktrace was reportedly acquired “by Thoma Bravo for $5.3 billion, becoming the highest valued acquisition in the first six months of 2024 after the purchase of EyeBio by Merck Sharp & Dohme for $1.3 billion.”
Enterprise Applications, FinTech and High Tech were said to be “the top-performing sectors in H1 2024.”
Companies in the Enterprise Applications and FinTech segments “raised around $2.7 billion each in H1 2024 and H1 2023.”
The High Tech space too, saw “only a small change in funding, from $2 billion in H1 2023 to $2.3 billion in H1 2024.”
Marex, AWAKN, and Perfect Moment were “the only companies that went public in H1 2024, similar to H1 2023 which saw three IPOs, but slightly lower than five IPOs in H2 2023.”
Among UK cities, London accounted for “more than half of the funding.”
Tech startups based in London have “raised $4 billion in H1 2024, followed by those based in Cambridge ($1.3 billion) and Oxford ($217 million), respectively.”
BGF, Y Combinator and Octopus Ventures are “the overall top investors in the UK Tech ecosystem in H1 2024. Octopus Ventures, ACF and Molten Ventures were the top early-stage investors, while CapitalG, BGF and Notion are the overall top late-stage investors in the UK Tech ecosystem for H1 2024. Techstars, Y Combinator and SOSV were the top seed-stage investors.”
The UK Tech landscape has experienced “a funding winter since 2022, in line with the global trend.”
However, the latest trend “in H1 2024 does seem to indicate stability, and the UK continues to be one of the largest startup ecosystems across the globe.”