For the first time, energy overtook finance in 2023 to become the most funded startup industry in the UK. Fintech, however, is back in Q1 2024 with $1.4 billion raised in 73 rounds, including major late-stage rounds for Monzo, Flagstone, and PPRO.

In the first quarter, UK startups raised a total of $3.9 billion, and there are indications that venture capital investment levels have stabilized after a significant worldwide reset from H2 2022.

Even though London will still receive the most venture capital in the UK in 2024, money for innovation hubs around the nation will still be allocated to Edinburgh, Brighton, and Cambridgeshire, all of which will experience notable development.

In the meantime, the UK continues to be the top location in Europe for startup investment and innovation. In Q1, UK startups raised nearly as much as their combined German and French counterparts. In the world rankings, the UK is still third, ahead of India and only behind the US and China.

Head of Technology and Life Sciences at HSBC Innovation Banking UK, Simon Bumfrey, highlights the busy start to the year for the UK innovation ecosystem. He notes growth in investment in established and emerging areas such as fintech and quantum computing. Additionally, he acknowledges the expansion of regional tech hubs across the length and breadth of the country, providing much to celebrate.