Private Equity

Venture capital funding to dry up amid ‘red flags’ in first half of 2022

Deal volumes in the last quarter were down to their lowest level since 2018, according to research

High levels of inflation and rising interest rates have already hit investment globally
High levels of inflation and rising interest rates have already hit investment globally Photo: Getty Images

British companies looking to raise cash in the second half of 2022 will be met with an increasingly cautious venture capital market, as economic uncertainty hits investment.

The value of VC investment in UK businesses held broadly steady in the second quarter at £7.2bn, according to KPMG, but researchers have highlighted warning signs for the remainder of the year.

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