“The venture capital market in the United Kingdom (UK) settled into a more selective, disciplined rhythm in 2025 as investors navigated a year shaped by inflationary pressure, shifting interest rates and global trade tensions that tested confidence across the wider economy. Deal value remained steady, although capital flowed more cautiously with investors favouring stronger fundamentals and clearer routes to profit. Early‑stage rounds remained active, while late‑stage financings were fewer and more scrutinised. Across Europe and the UK, valuations stabilised at more sustainable levels and sectors driving investment continued to be AI, life sciences and climate tech.1 Interestingly, the Private Equity market showed that 2025 was the lowest year for fundraising in 10 years.2