Investment in private UK companies during H1 reached a new high in deal value, while VC activity in Europe persists despite a recessionary environment.
The first half of 2022 experienced 1456 equity fundraising deals announced by UK-based companies, an increase of 10% on the half prior, which hosted 1319 deals, and just under the record deal number achieved in H1 of 2021, which boasted 1460 deals.
As deal volume heads up, deal values are also continuing their rise, as investors have deployed a record £14.9 billion across this year’s first half, representing a 23% increase in deal values since H2 2021, which concluded at £12.1 billion, and a huge 37% increase since H1 of 2021, which raised £10.9 billion.
Fundraising activity ducked slightly in Q2 of 2022 since the record-breaking Q1, which secured 793 funding rounds, worth a total value of £8.64 billion.
However, this doesn’t discount the astonishing 663 funding rounds which were announced during the quarter, accumulating to a total value of £6.25 billion, and as a result, amounting to the strongest Q2 to date when it comes to the amount raised.
These trends demonstrate the fact that despite downturns in the macroeconomic climate, the UK’s high-growth ecosystem is persisting on, as more was invested in the first half of 2022 (£14.9 billion) than in the whole of 2020, which saw a total deal value of £11.4 billion.
When it comes to venture capital fundraising, deal value has kept pace with 2021.
With 2021 being a record-breaking year for VC deal value in Europe, it was hard to predict the shift in wider financial markets that we have seen in 2022, as economic growth forecasts have not been on pace to come true, inflation rates have increased and interest rates have risen.
But despite this uncertain macroeconomic backdrop in Europe, VC deal value remains hugely resilient, producing €54.4 billion in H1 of 2022.
This is due in part the pandemic, which accelerated the flow of capital into tech-centered VC-backed companies, which have thrived during the COVID-19 restrictions, as an increasing number of online users have soared recurring revenues of tech companies globally.
This soar in the flow of capital in VC-backed companies has brought with it massive momentum for these tech-based companies to continue growing going forward.