UK Venture Capital Financial Returns 2024 (British Business Bank)

Summary

• Across the 2002–2019 vintage cohort, UK venture capital funds generated a pooled TVPI of 1.87 and a pooled DPI of 0.72, compared to 2.01 TVPI and 1.06 DPI in the US, and 1.96 TVPI and 0.81 DPI in the rest of Europe.p.5
• For older 2002–2007 vintages, UK VC funds outperformed other markets with a pooled DPI of 1.65, higher than the US at 1.46 and the rest of Europe at 1.41.p.5
• An analysis of an identical sample of 139 UK funds showed pooled TVPI multiples falling from 1.73 in 2023 to 1.61 in 2024 as managers marked down portfolios, while pooled DPI remained steady at 0.37.p.6

Key insights

1. Across 2002–2019 vintages, UK VC funds achieved a median IRR of 11.3%, aligning closely with the BVCA reported pooled IRR of 11.2%.p.13
2. UK funds in the 2008–2013 cohort generated a pooled TVPI of 2.11 and a pooled DPI of 1.41, up from 0.99 in the 2023 report.p.16
3. For recent 2014–2022 vintages, UK funds produced a pooled TVPI of 1.64, in line with 1.63 in the US and below 1.76 in the rest of Europe.p.17
4. Around 6% of UK funds with 2002–2019 vintages achieved a DPI multiple of 3 or higher, matching the proportion observed in both the US and the rest of Europe.p.20
5. British Patient Capital supported funds (2013–2022 vintages) generated a pooled DPI of 0.20, matching the wider UK VC market level of 0.19.p.32
6. Software and fintech were identified by 40% and 17% of surveyed UK fund managers, respectively, as the top sectors for investment opportunities.p.40