A new report from data and analytics company GlobalData reveals a complex picture of global venture capital funding in 2025, with key markets like the United Kingdom and China experiencing significant declines in deal value despite varying trends in deal volume.
The UK market, while remaining Europe's top destination for venture capital, saw both deal volume and value decline during the first eleven months of 2025. According to the report, UK venture capital deal volume dropped by approximately 19% year-on-year, while the total value of deals fell by 5% compared to the same period in 2024. This represents a slowdown from a strong start to the year, when January 2025 saw UK VC funding surge by 43.5% year-on-year to $1.2 billion despite fewer deals.
During the January-November 2025 period, the UK accounted for about 6.3% of the total number of VC deals announced globally and roughly 5% of the global deal value. Aurojyoti Bose, Lead Analyst at GlobalData, noted that "while the decline in volume is part of a larger trend observed globally, where total deal volume fell by around 5%, the reduction in value is noteworthy, especially when compared with the global total, which increased significantly by around 34%." Bose attributed the UK's decline to a more cautious investment climate where investors are becoming more selective, though they continue to place substantial bets on select startups.
China's venture capital landscape presented a contrasting pattern, with deal volume increasing but deal value plummeting. The total number of VC deals announced in China grew by 8% during January-November 2025 compared to the previous year, yet the corresponding funding value fell sharply by approximately 30% year-on-year. This resulted in China's share of global VC deal value contracting from around 14% in January-November 2024 to just about 7% in the same period of 2025.
Despite this value contraction, China increased its share of global deal volume from 15% to 17% during the reporting period, maintaining its position as the world's second-largest VC market after the United States. Notable Chinese funding rounds included $700 million raised by SJ Semiconductor, $600 million secured by Neolix, $460 million raised by Zhibu Internet, $336 million for Galactic Energy, and a $300 million investment in Minimax.
Bose commented that China's data suggests investors "are willing to engage in a higher number of transactions, they are increasingly cautious about the amounts they are committing." He added that this trend reflects "a nuanced shift in the investment climate as China navigates a complex array of economic and regulatory challenges" and mirrors a broader sentiment among venture capitalists adopting a more selective investment approach globally.
