New research reveals that Essex based businesses have experienced a 13% decline in funding rounds between Q1 and Q3 of 2024, as the global investment market cools amid broader market uncertainties.
The ‘Global Investment Report’, by sharetech platform Vestd, analysed Crunchbase data to assess the scale of global investment in 2024 and identify trends in the private equity sector across a range of regions and industries.
Essex-based businesses secured 26 funding rounds between Q1 and Q3 of 2024, a 13% increase compared to the same period last year, signalling a tougher environment for start-ups in the area.
Overall, while the UK accounted for 6.6% of global funding rounds, investment in early-stage businesses has slowed across the country, with funding rounds down by just under a third year-on-year.
Between Q1 and Q3 of 2024, the total number of funding rounds globally reached 36,203 – marking a decline of more than 25% from the same period last year.
This comes after the first International Investment Summit, where a reported £63 billion of private investment has been committed, and included partnerships in key sectors such as infrastructure and tech.
Cambridgeshire and Oxfordshire saw the highest number of funding rounds regionally, with 85 and 72 respectively, however, compared to last year they both saw a decrease in investments.
Wales saw the greatest increase in funding rounds, with a 133.3% year-to-date increase, followed by Cumbria with an 85.7% increase, signalling potentially positive futures for startups in these areas.
As the capital and a major business hub, it is unsurprising that funding activity for cities remained largely concentrated in London, with 1,230 funding rounds in total between Q1 and Q3 of 2024. However, while Q1 showed a promising start with 474 total funding rounds, activity had cooled by 29.1% by the end of Q3.
Manchester and Edinburgh followed behind London in second and third, however, had much lower funding rounds than the capital with 72 and 65 respectively in 2024. Both cities also saw a decrease in funding rounds compared to the same period last year.
