The venture capital (VC) funding landscape in the UK has encountered a significant downturn in the first half of 2025, according to figures from GlobalData.

The data and analytics company revealed declines in VC funding by both deal volume as well as value, compared with the H1 period in 2024.

The UK saw a decrease of around 14% in VC deal volume in H1 2025 compared to last year, while there was a year-on-year decline of around 12% in corresponding deal value.

Lead analyst at GlobalData, Aurojyoti Bose, suggested the trend “underscores the challenges faced by UK startups in attracting investments”.

“This decline in activity is indicative of the cautious approach that investors are taking amid economic uncertainties and challenging market conditions,” Bose commented.

“While this downturn may raise concerns about the future of its startup ecosystem in an increasingly competitive global environment, it is also important to note that the decline in the UK’s VC funding mirrors patterns observed in other major markets.”

By comparison, the US, while still leading in both deal volume and value, experienced a year-on-year reduction of 4% in VC deal volume. China, which ranks second, also saw a notable decline in both metrics, with deal volume dropping by approximately 6% and deal value plummeting by over 40%.

GlobalData also suggested that the UK is still a “vital player” in the global VC ecosystem and, despite its falling figures in H1, has continued to rank among the top five markets in the world.

According to GlobalData’s deals database, the UK accounted for around 7% of the total number of VC deals announced globally in H1, while its share of the global deal value during the period stood at around 4%.

Some of the notable VC funding deals announced in the UK during H1 included the $600m raised by Isomorphic Labs, $411m secured by Verdiva Bio, $300m funding raised by Rapyd, and $200m raised by CMR Surgical, among others.

“Despite the challenges, there are promising signs within the UK VC ecosystem,” Bose added. “Certain sectors, particularly technology and healthcare, continue to attract investor interest, indicating that opportunities for growth still exist.”

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