Venture capital in the UK 2025
The BVCA’s ‘Venture capital in the UK’ 2025 report sets out the latest research on the scale of venture capital investment across the nations and regions of the UK. It found that the VC industry played a bigger role in the UK economy in 2024, increasing both investment and fundraising activity compared to 2023.
Supporting businesses and jobs
The report found that:
- The total amount invested in British businesses by VC funds, co-investors and financial institutions was £9bn in 2024 - a 12.5% rise compared to 2023.
- As of 2025, VC supports over 378,000 jobs across the UK - a 20% rise compared with 2023.
- As of 2025, over 9,000 businesses are backed by VC in the UK - 11% more than in 2023.
The report lays out the levels of VC investment across sectors, with businesses in the IT and communications sector, professional, scientific and technology sector and the finance and insurance sector representing a significant proportion of jobs in VC-backed businesses.
Retaining the UK’s position as a leading VC hub
To retain the UK’s status as Europe’s leading hub for VC, the report sets out a series of recommendations for the Government. These include:
- Unlocking pension investment into innovative UK companies.
- Ensuring the tax credits system is consistent and efficient.
- Increasing limits on accessing funds through SEIS, EIS and VCTs.
- Supporting new and emerging managers by expanding the British Business Bank’s Enterprise Capital Fund programme.
- Expanding the British Business Bank’s Nations and Regions Investment Funds.
- Addressing legal and regulatory barriers for emerging VC funds in the UK.
