The UK venture capital (VC) activity witnessed a slowdown in the first seven months of 2025, with both deal volume and value declining year-on-year (YoY). The pullback reflects a combination of macroeconomic headwinds and the recalibration of investor strategies. Yet, the UK’s diversified innovation ecosystem and strong tech and healthcare sectors ensure it remains a vital hub in the global VC landscape, reveals GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database reveals that the UK market has seen a decrease of approximately 14% in VC deal volume and a decline of around 11% in corresponding funding value during January-July 2025 compared to January-July 2024.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Investors are increasingly prioritizing quality over quantity, directing funds towards businesses with strong fundamentals and clear pathways to profitability. The UK’s slowdown mirrors similar caution seen in other markets, including China, signaling a more disciplined and selective phase in VC investing.”
However, despite these challenges, the UK remains a key player in the global VC ecosystem and is among the top five markets in terms of both deal volume and value. The UK accounted for around 7% of the total number of VC deals announced globally during January-July 2025 while its share of the global value stood at around 4%.
Moreover, the UK’s vibrant tech ecosystem, particularly in sectors such as technology and healthcare, continues to attract interest, albeit at a more cautious pace.
Some of the notable VC funding deals announced in the UK during January-July 2025 include $600 million raised by Isomorphic Labs, $411 million secured by Verdiva Bio, $350 million secured by PS Miner, $300 million funding raised by Rapyd, $200 million raised by CMR Surgical, $180 million raised by Synthesia, and $160 million secured by Xelix.
Bose concludes: “While near-term caution is evident, this recalibration is not a retreat but a sign of maturing capital discipline. As macroeconomic conditions stabilize, sectors demonstrating clear value creation, particularly in deep tech and life sciences, are well-positioned to attract sustained investment. Long-term fundamentals for the UK VC market remain resilient, supported by its robust innovation infrastructure and global investor interest.”
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.
