Venture Capital Update - BVCA Summit and Investing for a better economy
The VC View: BVCA Summit and Investing for a better economy
A shorter update this month, however, despite what some of our cousins across the pond say on social media about European tech shutting down over the summer, there has been no sense of that here or from our members. Deals, fundraising and exits have continued apace, including the sale of an Oxford University spinout, OrganOx, for a reported $1.5bn.
We are also gearing up for our flagship Summit on 9-10 September. The tagline this year is Investing for a better economy, looking at how private capital can unlock growth in the economy. Venture is, as ever, central to this.
On our dedicated VC stage, taking place at the Main Conference on 10 September, we will hear from a range of speakers from firms such as Lightspeed, Balderton and Molten Ventures. They will discuss the outlook for venture in the UK and Europe, the evolution of venture as an asset class, and the latest developments in science & tech.
There will be a number of high-profile commentators throughout the day, such as Beth Rigby from Sky News, providing wider political and macro-economic analysis. We will also have senior parliamentary speakers, with more details to come on this. As a reminder, GP firms are eligible for up to two free tickets. Find out more and book your place here.
We have also been diligently working on several consultations launched over the summer, including on financing the real economy (see below), the Financial Services growth strategy, and on climate transition and green financing.
Finally, I’d like to encourage all Investment Compact signatories and VC firms to complete our VC/pensions survey by 4 September. This will ensure we can continue to explore how the market is evolving for pensions and VC, and build on our report from earlier this year. It should take less than 10 minutes, I promise.
Chris Elphick, Head of Venture Capital, BVCA
BVCA Round-Up
RESEARCH:
BVCA seeks member views on the UK’s economic outlook
The BVCA is inviting members to share their views on the state of the UK economy and plans for future investment in its new Private Capital Pulse survey.
The survey will provide the BVCA with evidence of how attractive the UK is as a place to invest, and what factors play the biggest role in determining whether to invest in British businesses.
The findings of the survey will help shape the BVCA’s engagement with Government and Opposition figures when parliament returns for Party Conference season and ahead of the upcoming Budget.
The survey takes just 5 minutes to complete and closes on Monday 1 September. Complete the survey here.
For any questions related to this survey, please contact Research Manager, Ewa Skornas.
POLICY:
BVCA preparing response to new Select Committee inquiry on closing the scale-up investment gap
The BVCA will set out barriers to attracting and mobilising private capital investment in the UK in an upcoming response to the Business and Trade Committee’s new call for evidence on “Financing the Real Economy”.
The Committee is seeking views on a range of issues, including:
- The effectiveness of current Government initiatives to support business investment.
- The role of institutional investors and private capital in financing growth.
- Barriers to investment in UK SMEs and scale-ups.
- How to improve the UK’s investment environment to remain globally competitive.
In its submission, the BVCA will highlight the need to mobilise greater institutional investment into UK private capital markets, address the persistent scale-up funding gap faced by high-growth companies, and recommend targeted regulatory reforms to improve the UK’s competitiveness.
BVCA members are encouraged to submit views to help shape the submission. Please contact the BVCA’s Public Affairs team by Friday 5 September.
POLICY:
BVCA welcomes Science & Technology Venture Capital Fellowship announcement
The BVCA has welcomed the next round of the Science and Technology Venture Capital Fellowship, delivered by the Royal Academy of Engineering and Imperial College, in partnership with the Department for Science, Innovation and Technology.
The Fellowship aims to provide professional education and leadership for mid-career VCs and build specialist knowledge in areas such as life sciences, clean energy, defence, and AI, to strengthen the UK’s venture capital ecosystem.
The Fellowship sits alongside wider initiatives to improve the UK’s innovation landscape, including reforms to unlock scale-up finance, implementation of the Spin-out Review, and long-term support for R&D.
The Government has made welcome commitments, through the Industrial Strategy and recent Spending Review, to prioritise science and technology as engines of long-term growth. This direction of travel is encouraging and underscores the importance of ensuring the UK remains the best place to start and scale a business.
Applications for the current cohort are open but will close on Tuesday 9 September.
For more information about the BVCA’s science and technology activities, please contact Senior Venture Capital Executive, Baderin Tejuoso.
EVENT:
BVCA Pensions & Private Capital Showcase event to focus on pensions investment in venture capital
The BVCA will hold its inaugural Pensions & Private Capital Showcase event on Thursday 2 October. This event will build on the work of the Pensions and Private Capital Expert Panel on unlocking pension fund investment, and will focus on the impact that investment in this asset class can have on the development of innovative and transformative technologies across the UK.
This will be a half-day event from 2-6pm at The Conduit in central London. The programme will include presentations from leading investors and their portfolio companies to explore the private capital industry’s contribution to the UK economy, covering key sectors such as defence and life sciences. The event will conclude with networking drinks.
Places are limited, with priority given to Investment Compact signatories. If you would like to attend the event, please register your interest with the BVCA Events team.
Research Update
VC investment in Europe slows, but defence tech and AI attract mega deals
A new report from KPMG finds that venture capital investment fell slightly to $14.6bn in the second quarter of 2025 from $16.3bn in Q1. The Q2 2025 Venture Pulse reports that deal volume declined more sharply from 2,358 deals in Q1 to 1,733 in Q2.
Despite the slowdown, several large deals highlighted the continent’s resilience, particularly at the intersection of AI and defence tech, reflecting strong investor appetite for AI-driven security and infrastructure technologies amid heightened geopolitical concerns across Europe.
In the UK, VC funding mirrored the broader European trend, dropping from $5.2bn in Q1 to $3.5bn in Q2, its lowest level since early 2020 - largely due to reduced corporate venture capital activity. AI remained a dominant investment theme with growing investor confidence in its transformative potential across sectors.
Media Update
In the news this month, Michael Moore penned a comment article in City AM laying out what the venture capital industry needs to see from the Chancellor. In this article Michael argued that the imposition of a wealth tax would send a negative signal to investors and could affect the level of investment in the UK.
Alongside this, he highlighted the need to reform the Enterprise Management Incentive, Enterprise Investment Scheme, Venture Capital Trusts and Seed Enterprise Investment Scheme, to ensure that these schemes keep pace with industry developments. The need to reform VCTs was echoed by Chris Lewis, Chair of the Venture Capital Trust Association, in a comment piece for FT Adviser.
Meanwhile, Funds Europe reported that the venture capital funding landscape in the UK encountered a downturn in the first half of 2025 with a decline in both deal volume and value compared to the same period in H1 2024.
Funds Europe also reported that the UK’s defence and national security sectors are set for expansion, with investment in European defence, security and resilience startups reaching an all-time high of $5.2 billion in 2024.
Finally, the FT reported that venture capital investors are stepping up investments into European “Iron Dome” type air defence technologies as governments look for cost-effective ways to counter mass attacks from drones.
- City AM:
Here’s what private equity and venture capital need from Rachel Reeves - FT Adviser:
VCT policy needs modernising to give UK growth the boost it demands - Funds Europe:
UK venture capital funding deal value drops 12% in H1 - Funds Europe:
European defence VC funding hits record $5.2bn - FT:
Venture capital steps up ‘Iron Dome’ air defence investments
Spotlight
SaaStock Europe: Backing the next generation of AI & SaaS leaders
SaaStock Europe returns to Dublin on 14–15 October 2025, bringing together 4,500+ founders, investors, and AI & SaaS leaders for two days of high-impact content, networking, and deal-making. The BVCA are proud to be official partners of this event.
In its biggest year yet, the event will host the Global Pitch Competition, awarding a €1 million investment to one standout early-stage AI or SaaS startup. The live pitch takes place in front of top-tier VCs, press, and global tech decision-makers.
BVCA members and their portfolio companies are invited to apply for the chance to pitch live on stage and gain exposure to a world-class audience. Apply to pitch here.
BVCA members can also access 30% off tickets to SaaStock Europe using this exclusive link: Get your 30% discount.
For more on BVCA’s ecosystem engagement, please contact Senior Venture Capital Executive, Baderin Tejuoso.