The Q1 Equity Market Update 2024
Data for this report was finalised on 22 April 2024. To be included in our analysis, an investment must be:
- Dated between 1 January 2016 and 31 March 2024
- Publicly announced
- Some form of equity investment
- Secured by a non-listed UK company
Headline funding figures
The number of deals (492) was down 18% compared to Q1 2023 (600), but was slightly higher than Q4 2023 (485).
Turning it on its head, the total amount raised this Q1 (£2.42b) was significantly lower than Q4 2023 (£3.77b) — 36% lower. At first glance this might indicate a downward trajectory for 2024, but it is similar to the amount invested in Q1 2023 (£2.34b).
Time will tell whether investment volume will increase in Q2 2024 as it did in 2023; throughout the eight years we’ve been tracking this data, we’ve frequently seen Q1 as the lowest quarter for investment (aside from a particularly high Q1 2022). This quarter’s result is therefore not a sure-fire indicator of a wider downturn in investment.
It may also indicate, as we’ve seen more and more in our recent analysis, that investors are opting to hold back on investments at this time. And, as we discussed in our yearly version of this report, The Deal 2023, this uncertainty could be attributed to the 50 global elections being held in 2024, and their influence on the global markets.
Regional trends
In Q1 2024, high-growth companies in Scotland participated in 31 fundraising deals. equating to 6.4% of all deals. This corresponds to our findings in Q4 2023, where Scotland secured 31 deals. What’s more impressive is the amount secured (£224m), which works out as 9.4% of the amount invested across the UK. This is the highest amount invested outside of London and the South East — the two regions which typically have the highest investment.
London secured 47.1% of deals (227) and 59.9% of the total amount invested. The South East and the East of England follow behind securing 11.8% (£282m) and 8.9% (£189m) of total investment respectively. The large amount of investment into the East of England could be because of its close proximity to London, as well as having Cambridgeshire located in this area — there are 149 active academic spinouts hailing from the University of Cambridge and likely many young entrepreneurs receiving funding here.
Northern Ireland secured five deals, 1.0% of Q1 2024 deals and 1.2% of the total amount invested. This follows the typical pattern for Northern Ireland, which secured seven deals in Q4 2023.
Deal sizes
The mean deal size for Q1 2024 was £4.92m, significantly higher than Q1 2023 (£3.89m), but still considerably lower than that in Q4 2023 (£7.78m).
Aside from Q4 2023, we’ve seen a reasonably consistent mean deal size of around £4-6m since the post-pandemic investment boom, which saw mean deal sizes peak at £10m in Q3 2021. This average size is consistent with those in 2019 and 2020, possibly indicating a return to the previous ‘status quo’ for deal sizes. However, with the Q4 2023 outlier, it’ll become clearer at the end of 2024 if this is the case or if the average amount invested will rise again later in the year.
Megadeals in Q1 2024
Megadeal = £50m or more
Gigadeal = £100m or more
hyperexponential
Amount: £57.0m
Deal Date: 11 January 2024
Location: London
Industry: Software, financial services
hyperexponential develops pricing software for insurers. It secured £57m in January 2024 and has featured on two high-growth lists since 2020, as well as attending the Lloyd’s Lab accelerator in 2019.
ElevenLabs
Amount: £63.0m
Deal Date: 22 January 2024
Location: London
Industry: Software
ElevenLabs raised £63m in January 2024. It has developed an AI tool that generates audio content from text in multiple different languages. It launched in 2022 and since then has raised a total of £79.5m, as well as attending the Disney Accelerator.
Storegga
Amount: £65.2m
Deal Date: 8 January 2024
Location: London
Industry: Renewable energy
Storegga specialises in renewable energy technology, focusing on carbon capture, carbon reduction, and the transportation of stored carbon. Their aim is to help the private sector transition to a sustainable future. Storegga has hit two of our ESG Signals: clean & renewable energy and green infrastructure & building.
Tokamak Energy
Amount: £76.5m
Deal Date: 8 January 2024
Location: Oxfordshire
Industry: Renewable energy, nuclear energy
Based in Oxfordshire, Tokamak Energy is an academic spinout of the Culham Centre for Fusion Energy. The company develops fusion technologies in hopes of advancing the development of large scale clean energy production. It has hit three of our Innovation Signals and our clean & renewable energy ESG Signal.
Rocco Forte Hotels
Amount: £86.2m
Deal Date: 17 January 2024
Location: London
Industry: Hotels
Rocco Forte Hotels runs a chain of luxury hotels, from England to Italy and Russia. Since its incorporation in 1996, it has featured on seven high-growth lists including Fast Track International Track 200, Fast Track Top Track 250, and Top 100 – Britain’s Fastest Growing Businesses. It has also hit our 20% scaleup Growth Signal.
Build A Rocket Boy
Amount: £87.0m
Deal Date: 16 January 2024
Location: Edinburgh
Industry: Video games
This gaming company, headquartered in Edinburgh, was incorporated in 2016 and has since expanded internationally with an office in Budapest. Build A Rocket Boy was founded by Leslie Benzies, former president of Rockstar Games subsidiary Rockstar North — and has filed one patent for its VR gaming software.
Monzo
Amount: £339m
Deal Date: 5 March 2024
Location: London
Industry: Banking, software
Monzo has quickly become one of the world’s leading challenger banks and a household name. First marketed as a great card to use abroad, Monzo has now expanded into an extensive offering that includes borrowing and investment options. It raised £339m in March 2024, bringing its total fundraisings secured to £1.27b since its establishment in 2015.
About the authors
Lily Ruaah
Lily is a Content Associate and professional writer. She is responsible for content creation at Beauhurst and specialises in both creative and analytical writing. Prior to this, she worked as an SEO Content Writer and completed an MA in Creative Writing.
Ben Hyde
Ben is a Graphic Designer, creating everything from branding materials to visual content for Beauhurst’s blog and long-form reports. He has a keen eye for detail and a passion for good design. Ben holds a BA in Graphic Design from the University of Cumbria.
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