UK Venture Capital Performance: 2025 Data Shows Stronger Returns Compared with US Funds
New analysis from the British Business Bank shows that UK venture capital funds launched since 2020 are outperforming recent US peers on value to paid in capital multiples. This shift matters for private markets firms across Europe, where macroeconomic uncertainty has made fundraising and performance differentiation more challenging. Stronger relative performance provides UK managers with a more confident narrative when engaging with investors.
Why this matters
UK venture capital has faced questions about resilience, exit pathways and returns in recent years. The latest dataset suggests improvement in both performance levels and consistency. Better relative outcomes help managers position themselves more competitively and support LP allocation decisions into the region.
What is driving the performance
Funds launched post-2020 have delivered pooled TVPI multiples ahead of comparable US vintages
The performance gap between UK and US venture funds has narrowed more broadly across strategies
Sector exposure across technology, life sciences and innovation focused assets has supported resilience in deal activity and valuations
What this means for UK and European managers
UK funds can present a more compelling performance narrative relative to global peers
LPs may view UK venture capital as a more balanced risk return proposition
Managers can emphasise the growing maturity and depth of the UK innovation ecosystem
Risks and caution points
The proportion of UK funds achieving top quartile TVPI remains lower than in the US
Distributions to paid in capital are still modest overall, meaning realisation is heavily skewed toward future exit conditions
UK venture capital remains sensitive to broader macroeconomic and liquidity cycles
Takeaway
The latest performance data shows that UK venture capital is strengthening relative to the US and remains a credible destination for long term growth strategies. For fund managers and investors across Europe, the findings reinforce confidence in the UK ecosystem and support a positive narrative for fundraising and capital deployment.