The venture capital (VC) funding landscape in the UK has witnessed mixed activity in the first quarter of 2025, according to analysis by GlobalData.

The research and analytics firm said that this reflects “both resilience and challenges” amid a shift in the global economic environment.

The total VC deal value in the UK surged by around 38% year-on-year to $4bn in Q1, while the UK recorded a decrease in VC deal volume by around 13% in the quarter, however, compared to the same period last year.

GlobalData said that its figures, with VC deal value going up but deal volumes coming down, suggest a strategic pivot towards “larger, more impactful investments”.

Lead analyst at GlobalData, Aurojyoti Bose, said: “The decline in deal volume in the UK is in line with a broader global trend where total VC deal volume has also seen a reduction. 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 startups that demonstrate proven business models and strong growth potential.”

In terms of VC funding around the globe, the UK accounted for more than 6% share of the total number of deals announced in Q1. GlobalData highlighted that it also accounted for almost the same share of total funding value as well during the same period.

Bose added: “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 startups. 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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