It was reported last March that UK VC funding increased by 43.5% YoY to $1.2 billion in January 2025, in spite of fewer deals, but the quick start has apparently stalled over the following months as both deal volume and value have declined.
A report from GlobalData states that the UK saw venture capital deal volume drop by around 19% compared to the same period in the previous year. In terms of deal value, the UK saw a 5% year-on-year (YoY) decline during the same period.
The UK remains the top European market for venture capital, but Europe has long been a laggard when it comes to risk capital.
The report states that the UK accounted for around 6.3% share of the total number of VC deals announced globally during January-November 2025, while its share of the global value stood at around 5%.
“While the decline in volume is part of a larger trend observed globally, where total deal volume fell by around 5%, the reduction in value is noteworthy, especially when compared with the global total, which increased significantly by around 34%,” said Aurojyoti Bose, Lead Analyst at GlobalData.
Bose posited that the decline was due to a number of factors, including a more cautious investment climate. He said that investors are becoming more selective, but they are still placing big bets on some select startups.
