Innovation
Q1 UK innovation update
- Innovation
- Article
- 8 minutes read
Explore the latest trends shaping the UK innovation economy
- The Q1 UK innovation update highlights key trends and developments in the innovation landscape, showcasing the growth of sectors such as technology, health, and sustainability.
- Investment activity remains strong, with increased funding for startups and scale-ups, indicating a robust appetite for innovation despite economic challenges.
Introduction
Our quarterly innovation update, developed in partnership with Dealroom, is an essential view of the investment trends shaping the UK innovation economy.
The core stats
$3.9B
Raised by UK startups in Q1 2024
$1.4B
Went to Fintechs in Q1 2024
406%
Increase in VC investment in Edinburgh
The key takeaways
Green shoots prosper |
Fintech bounces back |
Innovation is everywhere |
|
The innovation economy continues to see positive momentum following a recalibration. UK VC investment is on a similar trajectory to 2019 and 2020, years that were second only to the outliers of 2021 and 2022. Promisingly, early-stage VC was higher than the previous two quarters, underlining investor appetite for emerging innovation opportunities. |
In 2023, Energy surpassed Fintech to be the UKʼs most funded startup sector for the first time. Fintech has bounced back as the most funded sector in Q1, with investment totalling $1.4B. Quantum computing and semiconductors also attracted significant interest, likely due to their importance in advancing AI. |
The UK remains the top destination in Europe for VC investment. Although London is the epicentre of this activity, exciting new innovation hubs continue to emerge. Both Edinburgh and Brighton have made fast starts this year, with Cambridgeshire also attracting significant investment. |
Simon Bumfrey l Head of Technology and Life Sciences, UK and Nordics, HSBC Innovation Banking"This data reflects a busy start to the year for the UK innovation ecosystem."
The views expressed in this article are solely those of the authors and do not necessarily reflect the views of HSBC Innovation Banking or any of its affiliates.
