The British Business Bank reports that UK venture capital funds achieved a pooled Total Value to Paid-In Capital (TVPI) return of 1.78x for vintages from 2002 to 2021, matching the performance of US funds. For funds launched between 2020 and 2024, UK returns reached 1.40x, surpassing the US at 1.24x and the rest of Europe at 1.27x.
In 2026, up to 29 September, 15 UK investment vehicles announced closures, securing at least €2.50 billion in capital. Notable deals include QuantumLight’s €432 million final close, Mouro Capital’s €343.7 million first close, and 2150’s €210 million final close for its second fund.
Molten Ventures secured a €203 million first close for a growth fund, while Claret Capital Partners closed a growth-debt strategy at €575 million. These figures reflect a broader trend of increased activity in both early-stage and later-stage UK venture capital markets.
Analysis of 800 fund progressions shows that 39% of successor funds from top-quartile managers maintained top-quartile performance. Additionally, over 70% of successor funds remained above the median, suggesting a degree of persistence in fund performance within the global venture ecosystem.
Despite strong returns, industry leaders note that domestic institutional investors, particularly pension funds, remain underinvested in the asset class. The report highlights a significant opportunity for these investors to support the growth of British startups into internationally competitive businesses.
