Investing in a better economy 2025 (BVCA (UK Private Capital))

Summary

• UK private equity and venture capital funds hold £190bn of capital ready to invest, with around half historically deployed within the UK.p.2
• Total investment by private equity and venture capital in UK businesses reached £29.4bn in 2024, representing a 44% increase compared to £20.4bn in 2023.p.4
• UK biotech companies raised £3.5 billion in capital, with venture funding accounting for over £2 billion in 2024 alone.p.4
• UK-managed funds raised £33.1bn to be invested globally in 2024, though only 17% of this capital originated from UK-based investors.p.6

Key insights

1. UK private equity and venture capital directly contribute £199bn to the economy in 2025, which represents 7 per cent of UK GDP.p.3
2. Productivity in private capital-backed portfolio companies grows by 1.1% per year faster than the broader business population.p.4
3. UK venture capital funding directs a quarter of its total investment into AI companies within a tech sector valued at over $21bn.p.4
4. Pension funds represent only 7% of total private equity and venture capital fund commitments by investor type.p.7
5. The Therapeutic Acceleration Support programme at UCL provides non-dilutive grants of up to £80,000 to validate early-stage academic IP.p.12
6. One third (33%) of surveyed investors state that a clear Net Zero policy roadmap would facilitate greater investment in UK businesses.p.14