The London Stock Exchange's junior market for growth companies, AIM, saw only nine new listings in the past year, a record low for the market.
The number of IPOs fell 88% from the previous year, and the amount of money raised through IPOs fell 97% to £46mln.
A number of factors, including volatile market conditions, the ongoing war in Ukraine, and rising interest rates have contributed to a decline in investor risk appetite, making it increasingly difficult for companies to raise capital.
AIM is a key source of funding for growth companies in recent years.
The fall in IPOs is likely to lead to job losses in the investment banking industry and could also impact the UK economy. It has also led to an all-share merger between Cenkos and finnCap, two stalwarts of the small-cap brokerage scene.
Market volatility is likely to remain for the time being, which could further dampen investor appetite for IPOs in the near term.
Colin Wright, partner and chairman of the UHY Hacker Young Group, said: “It has been the annus horribilis for speculative technology companies and the annus horribilis for AIM IPOs and investment banking community that works in that area.”