Venture capital investments in the UK surged in 2024 according to a new report from the British Private Equity and Venture Capital Association (BVCA).
The total amount invested in UK businesses by venture capital funds, co-investors and financial institutions in 2024 was £9bn, a 12.5% rise according to the BVCA.
Though 2024 saw significant macroeconomic challenges, the BVCA report noted that venture capital funds had a robust year compared with 2023, raising £4bn, almost double the amount raised the year previous (£2.3bn).
Last year also saw an increase in the total number of venture funds that raised capital, rising from 44 to 48.
Prominent funds launched last year from UK venture capitalists include Frontline Ventures’ £157m fund, Episode 1 Ventures’ £76m fund and Ada Ventures’ £63m fund.
To ensure progress continues, the BVCA advised the government to increase the limit on accessing funds through schemes such as the Seed Enterprise Investment Scheme, Enterprise Investment Scheme and Venture Capital Trusts.
The organisation also advised to expand the funding capabilities of the British Business Bank, the state-owned investment vehicle that contributes to various venture funds.
“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,” said 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.”
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