1、UK innovation2024 forward look10 January 20242024Page/2 Source:EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONLOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 2VC investment is growing again heading into 2024UK startups raised$21.3B in 2023,the third highes

2、t total on record,after just the outlier years of 2021/22.VC investment has been growing again as of H2 2023.Investment was up 46%in the second half of 2023,compared to the period Jan-Jun.$415m(series A)$14m(seed)$01m(pre-seed)AI and Climate tech are the UK hottest startup segmentsClimate tech accou

3、nted for 29%of all UK VC investment in 2023-$6.2B,an all-time high.This represented 40%growth year on year.Startups utilising AI raised$4.5B in investment in 2023,including significant rounds for Generative AI companies Synthesia($90M),AutogenAI($22.3M&$39.5M)and Stability AI($50M).$100250mLate$4010

4、0m(series C)$1540m(series B)BreakoutEarlySource:2024 in UK techStageCompanyLateCMR SurgicalLateConigitalLateZenobe EnergyLateShop CircleLateApollo TherapeuticsLateButternut BoxBreakoutCurveBreakoutTenpoint TherapeuticsBreakoutTractableBreakoutCausalyBreakoutSylveraBreakoutEnvisicsBreakoutENOUGHEarly

5、TimelineappEarlyContinuum IndustriesEarlyMatterEarlyBreedrEarlyAdministrateEarlyMachine DiscoveryDry powder-UK investors are armedUK-based venture capital investors have raised over$25B in the last three years.The UK is the centre of the European venture market,home to 40%of the continents venture c

6、apital,and London is the European base of choice for top international funds.The UK investor talent pool is deeper than ever,and VCs are raising 20 x what they did 20 years ago.The exit window opening?2023 saw the first few tests of the IPO window for global tech startups like Arm and Klaviyo.Of 168

7、 unicorns produced by the UK,63 have yet to exit via public markets or M&A.2024 could see the return of the UK tech IPO,with a rich shopping list of late-stage startups.Dealroom.coPage/3 LOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 2EXTRA CONTENTALIGN HERE EXTRA

8、CONTENT/SOURCES/INSPIRATIONSource:UKUK venture capital turned a corner in 2023.2024 could be the year of tentative recovery.Dealroom.co|Created with DatawrapperVC Investment in UK Startups view onlineLive data VC investment into UK startups,half year overview view more+46%H1-2018H2-2018H1-2019H2-201

9、9H1-2020H2-2020H1-2021H2-2021H1-2022H2-2022H1-2023H2-20235,356,654,5796,317,489,7979,371,451,5628,386,202,3737,356,802,4729,869,555,32519,292,685,86321,721,634,54822,250,311,8539,021,013,0418,627,687,14512,649,948,027$12.6M$8.6M$22.2M$19.2M$7.3M$25.0b20.0b15.0b10.0b5.0bPage/4 LOGOS SPACINGYEAR/EXTRA

10、 LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 2EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONSource:UKUK startups raised$21.3B in 2023.The UK hit its third highest total for VC in 2023,behind only outlier years of 2021/22.Dealroom.co|Created with Datawrapper2023E2021201920172

11、0152013Live data VC investment into UK startups,annual view onlinePage/5 Source:EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONLOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 2$415m(series A)$14m(seed)$01m(pre-seed)$100250mLate$40100m(series C)$1540m(serie

12、s B)BreakoutEarly201320152017201920212023201320152017201920212023201320152017201920212023Source:$415m(series A)$14m(seed)$01m(pre-seed)$100250m$250m+Late-stage investment has meaningfully slowed$40100m(series C)$1540m(series B)Breakout stage investment is at 110%of pre-pandemic levelsEarly-stage inv

13、esting has remained active,filling the startup pipelineStageCompanyLateCMR SurgicalLateConigitalLateZenobe EnergyLateShop CircleLateApollo TherapeuticsLateButternut BoxBreakoutCurveBreakoutTenpoint TherapeuticsBreakoutTractableBreakoutCausalyBreakoutSylveraBreakoutEnvisicsBreakoutENOUGHEarlyTimeline

14、appEarlyContinuum IndustriesEarlyMatterEarlyBreedrEarlyAdministrateEarlyMachine DiscoveryDealroom.co|Created with DatawrapperPage/6 LOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 2EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONSource:UKUK remains the#3 te

15、ch ecosystem in the world.Customise comparisons Dealroom.co|Created with DatawrapperPage/7 LOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 2EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONSource:UKThe UK is the#1 tech ecosystem in Europe.UK raises more VC t

16、han France and Germany combined in 2023.Customise comparisons Dealroom.co|Created with DatawrapperPage/8 Source:EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONLOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 2UK entrepreneurship is distributed throughout th

17、e country.Investment is growing fastest in the West Midlands,Glasgow and NI.LondonEdinburghSouth West EnglandOther 31 unicorns ManchesterInvestorNotable UK investmentNotable investment outside LondonNotable EMEA investment(not counted here)1TideOpen CosmosTravelPerk2RevolutEND.Adyen3LendableCultureA

18、ISpotahome4OmnipresentHubooFlutter 5Monzo BankUbiquisysCelonis6SynthesiaNodes&LinksPleo7DepopElvieCobee8GoCardlessDarktraceSinch9CopperInteractive InvestorLookiero10ImprobableOxford NanoporeIgenomixEV Charging50M Early VCBelfastAlt protein40M Series CGlasgowRobotics$165M Late VCCambridgeAutonomous V

19、ehicles400M Series ABirminghamEV Battery$870M Growth EquityLondonClimate Tech200M Growth EquityBristolCompanies for top 10 citiesDealroom.co Page/9 LOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 2EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONSource:Cumul

20、ative UK UnicornsRealised(105)Unrealised(63)UnrealisedLive data UKThe UK has produced 168$1B+startups.63 UK unicorns have not yet exited,worth a combined$180B.New unicorns minted in the UK in 2023see listDealroom.coPage/10 LOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1G

21、RAPH 2EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONSource:UKUK VCs have more dry powder than ever before.Over$25B raised in the last three years.Live data Dry powder focus pending full end of year dataTotal amount of new VC fund capital raised in the UKDealroom.coPage/11 Source:EXTRA CON

22、TENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONLOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 22014Dealroom.co.UK$42BUKThe UK is the home of European venture capital.40%of new European VC capital raised in the last five years is based in the UK.Europe$104BEuropean

23、 VC funds raised last five yearsDealroom.co.Page/12 Source:EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONLOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 22014UKLeading UK funds are freshly equipped to deploy in 2024.Explore New Funds Dealroom.co.Page/13 L

24、OGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 2EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONSource:UKElectric mobility,EV battery and Autonomous mobility were the top funded UK startup segments in 2023.Dry powder focus pending full end of year dataTotal

25、 amount of new VC fund capital raised in the UKDealroom.coPage/14 Source:EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONLOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 22014Top 10 UK investorsUK investorsInvestments in UK companiesInvestorNotable UK invest

26、mentNotable investment outside LondonNotable EMEA investment(not counted here)1TideOpen CosmosTravelPerk2RevolutEND.Adyen3LendableCultureAISpotahome4OmnipresentHubooFlutter 5Monzo BankUbiquisysCelonis6SynthesiaNodes&LinksPleo7DepopElvieCobee8GoCardlessDarktraceSinch9CopperInteractive InvestorLookier

27、o10ImprobableOxford NanoporeIgenomixThe majority of top EMEA investors are based in the UK.Therefore,for the UK ranking and look specifically at investments in the UK,made by UK investors.UK funds based outside LondonU.S.funds with London officeUK VCs account for 40%of all new funds raised in Europe

28、 in the last five years.The majority of funds are based in London,but a number of notable investors are also distributed across the country.The UK has also become a base for international capital investing across Europe.Many of the worlds top funds have set up shop in London.Dealroom.co.Page/15 LOGO

29、S SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 2EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONSource:LocalGLobeIndexAccelInsightTBDAir StreetEMEA dealsGlobal deals(not counted)Remote(Seed)Sorare(Seed)Tripledot Studios(Series B)Linktree(Seed)NexHealth(Seed)Ag

30、entSync(Seed)Thought Machine(Seed)Tractable(Series A)Synthesia(Series B+)Exscientia(via Allcyte M&A)Adept AI(Seed)Recursion Pharma(Series B+)Crusoe Energy(Series B+)Razor(Seed)Aleph Alpha(Seed)Zapp(Series A)UpScalio(Series A)Iterative.ai(Seed)Bardeen(Seed)Two of the top three Next-Gen investors in E

31、MEA are based in the UK.Looking only at funds founded since 2019,with some VCs building impressive portfolios in a short,turbulent period.The top 1%of funds in EMEA-20VC,Air Street Capital and 468 Capital come out as the top next-gen funds investing in EMEA,from over 300 funds founded since 2019.The

32、 top two are based in the UK.Dealroom.coPage/16 Source:LOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTERGRAPH 1GRAPH 2EXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONLEGENDUK startups employ 1.8M people.This represents 300%job growth since 2018.90%of these companies have

33、 under 100 employees.Employees of venture-backed startups view more2020202120222023201920181M500K1.8M1.7M1.4M1.0M897K601K1.5M2MDealroom.co.The founder flywheel is in full effect in the UK.Accel&Dealroom.co-full reportSource:Page/17 UK unicorns are spawning dozens of new startups via staff alumni tur

34、ned founders.LOGOS SPACINGYEAR/EXTRA LABELTITLEGRAPH TITLEGRAPH/MAIN CONTENTFOOTEREXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATION 2024 HSBC Innovation Bank Limited.All rights reserved.HSBC Innovation Bank Limited(trading as HSBC Innovation Banking)is registered in England and Wales at Alph

35、abeta,14-18 Finsbury Square,London EC2A 1BR,UK(Company Number 12546585).HSBC Innovation Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority(Firm Reference Number 543146).HSBC Innovation Bank Limited is

36、 part of the HSBC Group.HSBC Innovation Bank Limited is committed to making its website and related documents accessible to everyone.Learn more on CONTENTFOOTEREXTRA CONTENTALIGN HERE EXTRA CONTENT/SOURCES/INSPIRATIONBIG LOGOS SPACINGEXPLORE NOWThe gateway for innovators,builders,researchers,investors,and supportersuk.dealroom.coPowered byTHE UK TECH&INNOVATION DATABASE