The UK venture capital (VC) funding landscape in early 2025 is presenting a “mixed yet encouraging scenario”, according to GlobalData.

While VC deal volume has seen a slight decline, the increase in deal value signifies a “robust interest in quality startups”, analytics firm said.

In the first two months of 2025, the UK witnessed a decline of approximately 13% in VC deal volume, compared to the same period in 2024. Conversely, the total VC funding value recorded increase with the growth rate exceeding 50% year-on-year to total $2.4bn.

According to GlobalData’s deals database, the UK has maintained a significant share of global VC funding activity, accounting for more than 6% of the total number of VC deals announced worldwide in January and February this. In the same, period, the UK’s share of the total funding value also stood at around 6%.

Lead analyst at GlobalData, Aurojyoti Bose, commented: “This trend is in line with the global funding landscape and also aligns with a broader pattern, where many key markets, including the US, have also seen a decline in VC deal volume but massive growth in funding value.

“This surge in funding value in the UK is indicative of a shift towards more substantial investments in fewer, high-potential startups, reflecting a more selective approach by investors. The trend indicates that investors are becoming more selective, focusing their resources on businesses with strong growth prospects and innovative solutions.”

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