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Venture Capital

US investors favor UK for overseas VC deals

The UK tops the list of the most popular foreign targets for US investors in terms of the total number of VC deals. But US firms have been pulling back on VC investments outside their domestic market..

The UK has claimed the largest share of US investors’ foreign venture deals this year as the latter’s participation in non-domestic deals dwindles.

US investors have taken part in 3,418 VC rounds worth $50.2 billion outside of their domestic market this year, according to PitchBook data, a significant fall from last year’s total of 7,337 deals. While national deals with US firms have also fallen in 2023 compared to last year, it has been to a lesser extent than their foreign participation.

 

As the correction in VC markets persists, US investors are targeting fewer deals abroad as they become more risk averse and increase focus on existing portfolio companies. Geopolitical tensions have also led to a reduction in deals in certain countries, including China, following the Biden administration’s executive order restricting new American investments in certain technology sectors.

The UK, Europe’s largest venture hub, has seen the most participation by US investors; they were present in 526 deals this year. The country’s largest deals featuring VCs from across the pond include personal lending platform Abound‘s £500 million (around $606.2 million) round, which included GSR Ventures, and General Atlantic’s participation in a £280 investment in dog food company Butternut Box.

Elsewhere in Europe, US investors have joined 176 rounds in Germany and 150 in France. Last month, Silicon Valley firm General Catalyst agreed to partner with German seed investor La Famiglia, demonstrating a healthy appetite for European deals on the part of US investors.

Asia accounted for five of the the top 10 countries for US investor participation in VC deals. India has been the most popular Asian destination, registering 281 rounds worth €6.7 billion.

Despite the ongoing tension between the two countries, China still featured in the top 10 targets for US investors this year with 113 deals featuring their participation.

Featured photo by tzahiV/Getty Images

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    About Leah Hodgson
    Leah Hodgson is a London-based senior reporter for PitchBook, covering the venture capital ecosystem across Europe and the Middle East. Leah, who joined PitchBook in 2018, graduated from the University of Surrey with a BA in international politics with French. She has previously been a radio reporter in France. She later turned to financial journalism, covering the wealth management industry.
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