The UK’s venture capital (VC) market has slowed in 2025, with the number of deals and their total value declining from last year, new figures from GlobalData have shown.

The data and analytics firm revealed that in the period from January to August this year, deal volume fell by 13% while funding value dropped 17%, compared to the same period in 2024.

GlobalData said the UK’s performance had contrasted with other major markets, such as the US and India, which have demonstrated year-on-year growth of 64% and 14%, respectively, in funding value from January August in 2025.

Lead analyst at GlobalData, Aurojyoti Bose, commented: “This significant contraction highlights the tightening of the VC ecosystem, likely influenced by macroeconomic factors and evolving geopolitics.”

However, GlobalData suggested that while this signals a challenging investment climate, the UK had continued to secure some major deals and remains one of the top five VC markets worldwide.

It added that despite the challenges, there were signs of optimism within the UK market as some of the startups continue to attract notable investments amid the growing caution.

An analysis of GlobalData’s deals database revealed that the UK accounted for around 6% of the total number of VC deals announced globally in the period to August this year, while its share of the global value stood at around 4%.

Bose added: “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.”

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