Proactive Investors - Britain has created 176 $1 billion-plus startups or unicorns, with five new ones added in 2024 to date, new research from HSBC (LON:HSBA) and Dealroom has found.
“Notably, 69 of these unicorns are still unrealised, setting the stage for further lucrative exits and listings over the coming years,” said the report.
AI is likely to be a key area for start-ups in the future, with more than a fifth of tech investment in the UK heading into that area, said the report.
In total, AI startups raised US$2.1 billion or 22% of all new UK tech investment up from 12% five years ago when AI was just in its infancy.
Overall, UK startups raised US$5.6 billion in the second quarter of 2024, up 37% year on year, and by 47% compared to the first three months of the year.
Over the first six months of 2024, the total raised was US$9.4 billion, up from $8.1 billion in the same period in 2023.
“Almost half of all funds raised this quarter (45%) were across megarounds (worth $100-250 million) and mega+ rounds (worth $250 million+), up from 33% in the first quarter.
“This signals the return of megarounds as a key part of the UK VC landscape and highlights the importance of the UK AI ecosystem for innovation and growth investments.”
Funding rounds across seed and series A+ remained steady, in line with the previous three quarters.
Cambridge and Oxford startups raised the most venture capital outside of London in 2024 and ranked 1st and 3rd respectively in Europe by value produced by university spinouts.
Simon Bumfrey, Head of Technology and Life Sciences at HSBC Innovation Banking UK said: “This data shows that positive trends for investment into the UK innovation ecosystem are manifesting and signs of early optimism are coming to fruition – investors are becoming increasingly active, unlocking value for innovative UK startups particularly in the area of AI.
“We are hoping to see further large investments into UK AI and other areas, both from foreign and domestic investors as the year progresses.”