UK scaleup businesses received record £26billion in VC funding in 2021

In 2021, investment in UK scaleup businesses by venture capital (VC) reached record levels with £26billion invested, according to a KPMG survey.

The report found that the UK attracted more VC investment in 2021 than France and Germany combined, with the amount invested in fast growth businesses in the UK more than doubling (56%) in 2021 compared to 2020.

VC investment in Fintech is likely to remain one of the hottest areas of investment, following several digital banks in Q4’21 large VC rounds, but investment in Agtech is also expected to gain significant attention in 2022 as early stage businesses across the region grow and begin to attract larger funding rounds.

Venture Capital (VC) investment in South West businesses grew to £416million in 2021, according to KPMG UK’s Global Venture Pulse Survey. This figure was up from £318million in 2020, marking a 31% increase.

In the last quarter of the year alone, VC investment in South West businesses reached £196million.

Kay Drury, Transaction Services Partner at KPMG in the South West, commented: “2021 was another fantastic year for VC funding across the UK, but it was particularly encouraging to see a good regional split as well with numerous scale-ups operating outside of the major cities. Despite ongoing challenges posed by the pandemic and changing regulations, scale-ups in the South West have remained resilient and are well positioned to carry that momentum into 2022.”

Among the significant investments in the South West during the last quarter of the year were Bristol-based Ultraleap, a developer of 3D technologies, and Crowdcube, an Exteter-based crowd-funding platform designed to help create opportunities for individuals to invest alongside professionals and venture capital firms.