The UK’s venture capital (VC) funding space faced a challenging environment in 2025, GlobalData has stated, with dealmaking momentum slowing both in terms of volume and value.

According to figures from the data and analytics company, the total number of VC deals announced in UK declined by around 17% in 2025 compared to 2024, while the corresponding funding value witnessed a year-on-year slowdown of around 3%.

GlobalData’s financial deals database has shown that the UK accounted for around 6% share of the total number of VC deals announced globally in 2025, whereas its share of global value stood at around 4%.

“Compared with a 3% year-on-year decline in overall global deal volume and 31% growth in global value, the contraction indicates that the UK saw a sharper pullback than the broader market,” lead analyst at GlobalData, Aurojyoti Bose, commented.

“Nevertheless, while the steeper decline in deal volume in the UK points to tighter diligence, the comparatively modest drop in value suggests investors are still backing promising companies, particularly those demonstrating clear routes to profitability and scalable unit economics.”

Some of the notable VC funding rounds announced in the UK last year included the $1.1bn secured by Nscale, $600m raised by Isomorphic Labs, $500m secured by Rapyd, $411m secured by Verdiva Bio, and $350m secured by PS Miner.

“Despite the setback, the UK continues to remain among the top five markets for VC funding activity globally in terms of both deal volume and value,” Bose added.

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