GlobalData: UK venture capital market contracts but retains global standing
The UK venture capital (VC) market has slowed in 2025, with deal volume falling by 13% and funding value dropping 17% year-on-year (YoY) during January-August 2025. While this signals a challenging investment climate, the UK continues to secure some major deals and remains one of the top five VC markets worldwide, according to GlobalData, a leading data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: 'This significant contraction highlights the tightening of venture capital ecosystem, likely influenced by macroeconomic factors and evolving geopolitics.' The UK’s performance contrasts with other major markets, such as the US and India, which have demonstrated YoY growth of 64% and 14%, respectively, in funding value during January-August 2025.
Despite the challenges, there are signs of optimism within the UK market as some of the startups continue to attract notable investments amid the growing caution. Some of the notable VC funding deals announced in the UK during January-August 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, $175 million secured by Quantexa, and $160 million secured by Xelix. Resultantly, the UK VC market retains its relevance on the global stage. The UK continues to maintain a noteworthy share of the global VC landscape and is among the top five markets in the world in terms of both deal volume and value.
An analysis of GlobalData’s Deals Database revealed that the UK accounted for around 6% of the total number of VC deals announced globally during January-August 2025 while its share of the global value stood at around 4%. Bose concludes: 'The UK may be navigating a tougher funding climate, but its position as a global hub for innovation remains intact. Notable deals across life sciences, fintech, and technology show that investors continue to see value in UK startups. The challenge ahead lies in converting resilience into renewed momentum as global capital flows shift. The UK’s ability to innovate and attract investment will be crucial in shaping its future trajectory in the VC arena.'