UK-based AI startups are now worth $256bn, according to new data from Dealroom and HSBC Innovation Banking. They also account for 22% of the country's innovation ecosystem value — up from 12% in 2019.
In the first half of 2024, startups in the field raised $2.1bn. And this amount is projected to more than double in the coming five months. This means they're on track for another record-breaking year, following a $4.1bn total investment in 2021.
The leading AI rounds span a wide range of applications, covering sectors such as energy, healthcare, law, and finance.
London-based Wayve, which develops artificial intelligence for autonomous vehicles, topped investments during H1 2024 with a $1.1bn Series C round. Despite a challenging period, Stability.ai came in second place with $80mn.
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Overall, artificial intelligence is increasing its share of UK venture capital, reaching an all-time high of 23% this year. That's compared to 13% in 2023 and 10% in 2022.
An increasing trend in AI investment is being seen across Europe, according to a separate Dealroom report.
Artificial intelligence now accounts for 18% of the continent's VC funding — up from 10% a decade ago. GenAI, specifically, attracted 10% of the total funding, reaching a record $2.6bn in the second quarter of 2024.
UK leads Europe in VC investment
The UK remains Europe's leading nation for VC investment, raising $9.4bn in H1 2024.
That's still higher than the combined funding of runner-ups France and Germany with $4.3bn each. Switzerland follows with $1.7bn and the Netherlands with $1.6bn.
But despite the regional imbalances, venture capital funding is increasing across Europe, showing signs of (a much-awaited) rebound.