In the ever-evolving landscape of venture capital (VC) funding, both the United States and the United Kingdom have demonstrated resilience and adaptability in the face of market fluctuations during the first two months of 2024.
The US startup ecosystem, despite experiencing a significant year-on-year (YoY) decrease in deal volume, continues to showcase its appeal to investors. According to GlobalData, a total of 645 VC deals amounting to $15.4 billion were announced in the US during this period, marking a 53.3% decline in deal volume compared to the same period in the previous year. However, the decline in disclosed funding value was relatively minimal at 6.1%.
Aurojyoti Bose, Lead Analyst at GlobalData, notes that amidst this decline, there are bright spots. Despite the decrease in total deal volume, the impact on total deal value appears limited. Additionally, February 2024 saw a notable improvement in VC funding deal volume and value in the US, with increases of 12.2% and 80.3%, respectively, compared to January 2024. This momentum raises intrigue about its continuity in the upcoming months.
The US continues to dominate the global VC funding activity, accounting for 27.9% of the total number of VC deals announced globally during January-February 2024 and 45.7% of the disclosed funding value. Notable investments during February 2024 include Figure, Lambda, NinjaOne, and Bugcrowd, all of which joined the unicorn club with significant funding rounds.
Meanwhile, across the Atlantic, the UK startup ecosystem maintains its influential position globally, despite experiencing a YoY dip in VC funding. GlobalData reports that the UK raised $1.4 billion across 152 deals during the first two months of 2024, marking a 35.9% decrease in deal volume and a 39% decrease in deal value compared to the same period in the previous year.
Bose emphasizes that despite the decline, the UK remains a key player in the European VC funding landscape. It was the only European market to reach triple-digit deal volume during January- February 2024 and ranked among the top five countries globally in terms of deal volume and value during this period.
Notable VC funding deals in the UK during January-February 2024 included investments in Exohood Labs and Build A Rocket Boy.
The ability of both the US and the UK startup ecosystems to weather market fluctuations while remaining attractive destinations for venture capital underscores their robustness and capacity for innovation. As these ecosystems navigate challenges, their enduring prominence in the global VC arena persists, fueled by cultures of entrepreneurship and commitments to fostering growth and innovation.
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
Source: GlobalData.
