Activity in the UK’s venture capital (VC) space has registered a slowdown in the first seven months of 2025, with both deal volume and value recording annual declines, new figures from GlobalData have shown.

The data and analytics firm said the pullback reflects a combination of “macroeconomic headwinds” and the “recalibration of investor strategies”.

GlobalData’s deals database revealed that the UK market has seen a decrease of approximately 14% in VC deal volume, and a decline of around 11% in corresponding funding value, in the seven months from January to the end of July in 2025, compared to the same period in 2024.

However, despite these falls, GlobalData still described the UK as a “key player” in the global VC ecosystem and is among the top five markets in terms of both deal volume and value. The UK accounted for around 7% of the total number of VC deals announced globally in the first seven months of the year, while its share of the global value stood at around 4%.

Lead analyst at GlobalData, Aurojyoti Bose, said: “Investors are increasingly prioritising quality over quantity, directing funds towards businesses with strong fundamentals and clear pathways to profitability.

“The UK’s slowdown mirrors similar caution seen in other markets, including China, signalling a more disciplined and selective phase in VC investing.”

Some of the notable VC funding deals announced in the UK in the first seven months of 2025 include the $600m raised by Isomorphic Labs, $411m secured by Verdiva Bio, $350m secured by PS Miner, $300m funding raised by Rapyd, $200m raised by CMR Surgical, $180m secured by Synthesia, and the $160m raised by Xelix.

Bose added: “As macroeconomic conditions stabilise, sectors demonstrating clear value creation, particularly in deep tech and life sciences, are well positioned to attract sustained investment. Long-term fundamentals for the UK VC market remain resilient, supported by its robust innovation infrastructure and global investor interest.”

---