The UK venture capital (VC) market recorded a year-on-year (YoY) decline in both deal volume and funding value in January 2026, reflecting a more selective investment environment at the start of the year. The total number of VC deals announced during the month fell 20.9% YoY, while corresponding aggregate funding value declined 13.2%, reveals GlobalData, a leading intelligence and productivity platform.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The relatively moderate fall in terms of deal value compared to deal volume suggests that investors are prioritizing quality over quantity and backing proven scalable models. In fact, the average size of VC deals announced in the UK increased from $14 million in January 2025 to $15.4 million in January 2026.”
An analysis of GlobalData’s Financial Deals Database revealed that the UK remained among the top five global markets for VC activity in January 2026. The country accounted for approximately 6.2% of total VC deals announced worldwide, marginally up from 6% a year earlier. However, in value terms, the UK’s share declined more noticeably to 1.3%, compared with 4.7% in January 2025, underscoring the relative shift in global capital allocation.
Bose adds: "This decline in share is less a reflection of UK-specific weakness and more an outcome of exceptional value expansion in the US, where capital deployment surged dramatically and lifted the global aggregate.”
It is noteworthy that total global VC funding value YoY increased by more than 200% in January 2026, primarily driven by the US that registered more than fourfold (4x) jump in funding value.
Bose concludes: “With average deal sizes rising and investors concentrating capital into scalable, defensible models, GlobalData expects activity to remain disciplined in the near-term. A gradual rebound in volumes is likely as macro visibility improves, and growth-stage confidence strengthens.”
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.
