Venture capital funding in the UK jumped by almost 40% in the first quarter, despite there being fewer deals, according to analytics specialist Global Data.
The market reached $4bn (£2.9bn) during the period, but dealflow was 13% lower than in the opening three months of 2024, which points towards a trend for larger deals.
The decline in volume is in line with the global trend, said Aurojyoti Bose, Global Data’s lead analyst. “However, the growth in value tells a different story, indicating a shift in investor sentiment towards fewer, but larger funding rounds.
“While the decline in deal volume reflects a cautious approach from investors, the growth trend in terms of value reflects a growing preference for substantial capital infusions into start-ups that demonstrate proven business models and strong growth potential,” he added.
The UK accounted for more than 6% of the global venture capital market’s value during the first quarter. Interestingly, it held a similar share of the announced deals.
Activity in the first quarter, gives Bose optimism of more to come.
“While the initial months of 2025 have presented a mixed picture, the increase in deal value signals a robust appetite for investment in high-potential start-ups.
“As the market adjusts to evolving conditions, the focus on larger, more strategic investments may well position the UK as a resilient player in the global VC ecosystem.”
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