New data from the British Private Equity and Venture Capital Association (BVCA) reveals a significant resurgence in investor confidence, with UK businesses receiving £29.4 billion in private equity and venture capital funding in 2024. This marks a 44% increase from 2023’s total of £20.4 billion, underscoring a strong rebound in deal activity and growth backing across key sectors.
This increased investment has fuelled the growth of businesses across the UK, with six in ten (58%) of the businesses backed located outside of the capital. Investment in the East of England, North West and South West increased significantly in 2024. In 2024, private capital invested £4.7bn in the East of England, up from £1.3bn the previous year, driven by investment in IT and communications businesses. £2.3bn was invested in the North West compared to £885m in 2023, with more than half of this directed to biotech and healthcare businesses. In the South West, £2.2bn was invested compared to £717m in 2023, driven by investment in business products and services companies.
Of the almost 1,600 businesses which received private capital investment in 2024, nine in ten were small or medium-sized, showing the importance of private capital to the UK’s diverse entrepreneurial and start-up economy.
Private equity represents a growing part of the UK economy
Further analysis conducted by EY on behalf of the BVCA demonstrates the growing role that the private equity and venture capital industry’s play in the UK.
Private equity now makes an annual economic contribution of almost £200bn to the wider British economy, equating to 7% of GDP (up from 6% in 2023). This economic contribution is underscored by the fact that the private equity and venture capital industry is characterised by its approach of investing for the long term, which provides a stable business backer in times of both prosperity and uncertainty.
The sector now supports over 2.5 million jobs in 2025, up from 2.2 million in 2023. These jobs are in a range of sectors right across the nations and regions of the UK, with over two thirds (69%) of jobs supported being outside of London. These are in businesses that range from some of the largest multinational corporations to the newest innovative start-ups.
