At the end of January, we launched out lookback and forecast on tech investment trends at the Annual Investment Review. Thanks to our partner, TLT, for making this research possible and enabling us to bring the community an outline of the present landscape. Excitingly, you can now download the full Annual Investment Report here!

2023 tech investment overview

In the ever-evolving South West tech scene, the year 2023 brought a blend of challenges and triumphs. Despite global uncertainties, the region’s companies secured a commendable £462 million in equity investment, reflecting both resilience and adaptation. Albeit this marks a 50% decline from the previous year.

Throughout the turbulence, in the wider economy, the tech sector remained steadfast, underscoring its importance in driving regional growth. Notably, there was a notable uptick in investment toward clean tech, green tech, and net-zero solutions, signaling a collective shift towards sustainability-driven endeavors.

“2023 was a challenging year for UK-based companies”

Unsurprisingly, ventures like eXmoor Pharma and Albotherm were able to showcase the innovation and resilience of women in the tech landscape, despite only 2.6% of South West equity investment going to companies with fully female founding teams.

As we look ahead to 2024, while immediate reversals of the 2023 trends may not be anticipated, the region’s tech ecosystem remains poised for continued growth. With a robust support network and a pipeline brimming with innovative ideas, prospects appear promising.

To summarise, Nina Searle, Partner at TLT says, “2023 was a challenging year for UK-based companies, with geo-political and macroeconomic headwinds impacting investor confidence and valuations. National and global statistics for 2023 all point to fewer, smaller, investments being made and taking longer to close; the South West was not immune to these wider trends.

“However, despite the overall dip, the South West looks to have maintained a similar level of activity as the national (and indeed global) statistics would suggest for 2023, and investment trends across sectors in the region have remained consistent compared to 2022, indicating resilience in areas such as tech and IP.”

Find out for yourself by reading the full Annual Investment Report here. Thanks again to our partners TLT, SETsquared Bristol, and Engine Shed for facilitating this research and supporting techSPARK on its mission. 

Shona Wright

Shona covers all things editorial at TechSPARK. She publishes news articles, interviews and features about our fantastic tech and digital ecosystem, working with startups and scaleups to spread the word about the cool things they're up to. She also oversees TechSPARK's social media, sharing the latest updates on everything from investment news to green tech meetups and inspirational stories.