UK Venture Capital Financial Returns 2025 (British Business Bank)

Summary

• UK VC funds with 2002-2020 vintages generated a pooled TVPI multiple of 1.84, compared to 1.85 for the rest of Europe and 1.95 for US funds.p.4
• For the recent 2020-2023 vintages, the UK's pooled TVPI of 1.22 outperformed the US market multiple of 1.14.p.4
• Exits of UK VC-backed companies generated £13.4 billion in total value in the twelve months to 2025Q1, more than double the previous year.p.15
• The British Business Bank's ECF portfolio generated a pooled DPI multiple of 0.62 compared to 0.48 for the wider UK VC market.p.6
• A survey of 50 UK VC fund managers found that 68% expect exit conditions to improve over the next year, and 79% view investment opportunity quality as good or very good.p.7

Key insights

1. UK VC funds from 2002 to 2020 vintages delivered a pooled DPI of 0.69, in line with the rest of Europe at 0.70 and below the US at 0.99.p.4
2. Median pre-money valuation for UK VC deals increased by 5.6% in the year to 2025Q1.p.13
3. In 2024, UK private equity fundraising reached £53.4bn, private debt raised £27.8bn, and venture capital raised £7.3bn.p.31
4. Bank-supported venture and growth funds with 2018-2023 vintages generated a pooled DPI of 0.09 and a pooled TVPI of 1.17.p.6
5. Among Industrial Strategy priority sectors, Digital and Technologies showed the highest UK GP investment appetite at 85%, followed by Financial Services at 64% and Life Sciences at 47%.p.7
6. Over two thirds (69%) of surveyed UK fund managers judged the current VC market conditions for raising new funds to be poor or very poor.p.46