Venture capital (VC) funding in the UK has experienced a “notable shift”, according to GlobalData, with an improvement in deal value despite a fall in deal volume through the first three quarters of 2025.

Figures from the data and analytics company revealed the total number of VC deals announced in the UK registered a year-on-year decline of 14% during the Q1 to Q3 period this year, while the corresponding total funding value increased by 5%.

Globally, the pattern was similar with the total number of VC deals falling by around 5% against last year in the same period, whereas the total value was up by 41%.

Similarly, the US experienced VC funding value increase by 84% through the opening nine months of the year, even as deal volume experienced a decline of around 3%.

Lead analyst at GlobalData, Aurojyoti Bose, commented: “The VC funding activity in the UK mirrors with the global trend as well as the trend observed in some other key markets, including the US, which saw a reduction in deal volume but an improvement in terms of value.

“While the decline in deal volume is concerning and can be attributed to a combination of factors, including macroeconomic conditions and evolving investor sentiment, the increase in deal value suggests that investors are becoming more selective and placing big bets in high-potential startups. This trend indicates a nuanced landscape, where quality is prioritized over quantity.”

GlobalData suggested that the UK “continues to hold a significant position” in the global VC market, and that the nation remains among the top five both in terms of deal volume and value.

The UK accounted for around 7% share of the total number of VC deals announced globally during though the first nine months of the year, while its share of global value stood at around 5%.

Bose added: “The combination of a decline in deal volume and an increase in deal value underscores the evolving nature of investment strategies in the market. The focus on high-quality investments is likely to persist in the UK, encouraging startups to refine their business models and demonstrate clear pathways to profitability.”

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