Digital Horizon, a UK venture firm specialised in fintech, marketing tech and e-commerce, just published new survey findings indicating 56% of UK investors plan to increase LP contributions to VC funds next year.
The Censuswide survey of 250 UK-based LPs indicated exactly one in five (20%) of UK investors planned a "significant" uplift to their LP commitment next year, in spite of the deteriorating mood music created by "plummeting valuations" and political and economic uncertainty.
The news comes days after Tech.eu reported in-depth on this year's State of European Tech report — courtesy of Atomico — the report indicating that dry powder holdings this year reached a new peak of $44 billion, marking an all time high.
Further survey findings from the UK, according to Digital Horizon, indicated 35% of the LPs planned to invest in domestic businesses next year, second only to North America (44%).
Around 30% of the survey have MENA (Middle East and North Africa) in their sights, followed by Latin America (28%) and the rest of Europe (27%), Asia (23%) and Israel (14%)
Asked which macroeconomic risks were of greatest concern, 61% of the respondents picked rising interest rates and inflation, closely followed by "changes in tech companies' valuations (58%). The survey was carried out November 7 - 9 among 250 institutional investors, family offices, asset managers and brokers.
Alan Vaskman, founder and managing partner at Digital Horizon, commented: "Against the backdrop of tumbling tech valuations, political upheaval, and an impending recession, it’s incredibly encouraging to see that institutional investors retain a strong appetite for venture capital.
"Whilst the UK has faced an exceptionally challenging year, economically and politically, there’s a strong sense that optimism in the region remains."