The UK benefitted from over £3bn of investment by venture capital firms in 2015, representing approximately 25 percent of the total VC investment in Europe during the year.

Despite this bumper level, the year saw a decline in angel and early VC investment, although a slight uptick in late stage investment, and overall the number of funding rounds closed dipped to less than 800 for the first time in three years.

This mirrored what was seen on the other side of the pond and there are common reasons for the cooling – concerns over increasing valuations of private companies, particularly in the technology sector and the uneasy public markets. The early market movements in 2016 evidence the concerns and as prices fall, the bears step forward and the bulls retreat.

Read more: UK Tech Investment: What's the Deal For 2016?.