Venture capital investment in the UK and Ireland continued to boom in the first three months of the year as deal value surged ahead of European competitors.
Funding topped €8.4bn (£6.99bn) between January and March, making up over 30 per cent of total European investment, according to data from investment analysis firm Pitchbook.
Pitchbook analysts said British VC-backed firms had bucked the public market sell off trend as cash continued to pour in.
“London-based fintech giant Checkout.com completed a €883.8m round at a €34.5bn pre-money valuation in Q1, and its position as a leading payment specialist in Europe has strengthened,” the firm wrote.
Overall European deal value topped €27.5bn in the first quarter as investment levels remained elevated after the bumper showing in 2021, which saw over €100bn pumped into Europe-based firms.
Late stage funding rounds made up the bulk of the investment between January and March this year, with €19.7bn in investment occurring at the late stage, equivalent to 71.6 per cent of total deals.
But analysts at Pitchbook warned the global market volatility could spark a slowdown in venture funding later this year.
“Although VC is relatively insulated from public market shocks, tighter fiscal policy and poor macroeconomic performance will reduce investors’ risk appetite and hinder investment flows,” they said.