The venture capital (VC) funding landscape in the UK has experienced a year-on-year (YoY) decline in both deal volume and value during the first five months of 2025. VC deal volume declined around 13%, mirroring a broader contraction in global VC activity, which saw a reduction of around 6% in deal volume. Deal value declined about 14% YoY. This drop is particularly striking when juxtaposed with the global landscape, where total VC funding value surged by around 39%, reveals GlobalData, a leading data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “While the decline in value contrasts with the global trend, it is essential to recognize that the trend may not be as challenging as the data shows. The announcement of two billion-dollar deals* during May 2024 made all the difference, barring which the trend would have been otherwise and VC deal value for the UK would have showcased a YoY growth.”
In fact, even though the UK is yet to see announcement of any billion-dollar VC deal in 2025 so far, it is noteworthy that the country experienced an YoY upward trend in terms of total deal value when only the first four months of 2025 and 2024 are taken into consideration. An analysis of GlobalData’s Deals Database revealed that the UK VC funding value was up by 31% YoY during January-April 2025.
Nonetheless, the UK continues to maintain a significant position in the global VC ecosystem and has been consistent to remain among the top five markets both in terms of deal volume and value.
The UK accounted for about 7% of the total number of VC deals announced globally during January-May 2025. Meanwhile, its share of the global deal value stood at around 4% during the same period.
Bose concludes: “The UK’s venture capital scene has historically been characterized by its robust support for technology and innovation-driven sectors. However, given the dynamic nature of the global VC ecosystem, where emerging markets are increasingly capturing investor attention, the UK must adapt to maintain its competitive edge.”
*Deals valued more than or equal to $1 billion.
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
