The venture capital or VC funding landscape in the UK market saw a year-on-year (YoY) decline in deal volume by “12.6% from January 2024 to January 2025, with the number of deals dropping from 87 to 76.”
Despite this decrease in deal volume, the total funding value increased significantly by “43.5% from $863.2 million in January 2024 to $1.2 billion in January 2025,” according to GlobalData, a data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments:
“The notable rise in total funding value, despite a decline in deal volume, highlights a shift towards larger investments in the UK market. Furthermore, the UK has upheld its position as a prominent market in the global venture capital funding landscape.”
An analysis of GlobalData’s Deals Database revealed that the UK “was among the top five markets globally for VC funding activity in terms both deal volume and value.”
The UK has reportedly accounted for “5.8% share of the total number of VC deals announced globally during January 2025 while its share of the corresponding funding value stood at 5%.”
Some of the notable VC funding deals announced in the UK “during January 2025 include $411 million fundraising by Verdiva Bio, $180 million funding in Synthesia, and $55 million worth fundraising by Lindus Health, among others.”
Bose concludes:
“The shift towards larger and more targeted investments signals that the UK VC funding landscape remains attractive. The increase in total funding value reflects a positive outlook for the UK startup ecosystem, underscoring the market’s appeal for those looking to make significant investments in promising startups and innovative ventures.”