According to new insights from the British Private Equity and Venture Capital Association (BVCA), the total amount invested in British startups and scaleups by VC funds, co-investors, and financial institutions was £9 billion in 2024. This figure marks a rise of 12.5% when compared to 2023.

These findings come from private capital group’s Venture Capital in the UK 2025 report, which was launched at its recent Accelerate conference.

The report found that VC funds managed specifically from the UK had a robust year in 2024, with the total amount raised reaching £4bn, almost double the figure raised in 2023 (£2.3bn). This was underpinned by strong fundraising performance from several large UK-based managers.

The report also confirmed that VC makes long-term investments, finding that the holding period for VC investments exited in 2024 rose to 6.7 years. This long-term investment then gives business a platform on which to scale, improving productivity, upskilling employees, and generating more jobs.

In particular, VC investment plays an important role in the IT and communications sector, with 36% of jobs backed by the industry located in this sector. Businesses in the professional, scientific and technical sector (13%), and in the finance & insurance sector (10%), also represented a significant proportion of jobs in VC-backed businesses.

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However, to retain the UK’s status as a European leader for VC, the BVCA is calling for the UK Government to undergo a series of pro-industry actions and efforts. These include ensuring the tax credits system is consistent and efficient, addressing legal and regulatory barriers for emerging VC funds in the UK post-Brexit, and more.

“​​With one of the largest hubs for the industry in the world, UK venture capital is driving forward some of the most innovative and exciting businesses that will redefine the economy of the future,” commented Michael Moore, chief executive of the BVCA.

“From ensuring the tax system remains competitive internationally to making sure the government pensions reforms are introduced effectively, this industry must continue to be nurtured so that the UK retains its status as Europe’s leading hub for venture capital.”