Venture capital & private equity in the UK

A dynamic investment environment

The UK has a mature equity financing hub with a culture of innovation, international access, deep pools of expertise and a dynamic ecosystem. Global companies of all sizes and growth stages can find the capital and fundraising expertise in the UK, from seed funding, venture capital (VC), private equity (PE) to public listing. Many entrepreneurs choose to set up their companies in the UK to take advantage of the UK’s well-developed equity funding ladder.

The UK is also the doorway to growth for global investors. It is home to a huge pool of both early stage and mature businesses, providing a rich source of investment targets.

Mansion House Compact

The Mansion House Compact is an expression of intent, on a voluntary basis to take action to achieve better outcomes for UK long-term savers. The objective is to allocate 5% of default pension allocations to unlisted equity by 2030, and over time amount to £50bn to be invested in UK growth companies.

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Europe's leading magnet for PE and VC investment

The UK has the most mature PE and VC ecosystem in Europe with the largest number of PE and VC investors. The sector also has a highly international outlook. It connects UK and international companies with global capital.

£110bn

PE investment in the UK in 2023, one third of the total PE investment in Europe

£16.8bn

VC investment in the UK in 2023, double the value of the second largest, France

80%

of the PE & VC funds raised in the UK in 2023 were of foreign origins

£17.5bn

worth of PE &VC investment flows from UK firms to overseas portfolio companies in 2023

Thought piece

Corporate Venture Capital: harnessing the UK’s potential

One of the most international exchanges

The London Stock Exchange (LSE) is Europe’s leading public market with a deep pool of liquidity and access to international investors. London houses a dense network of advisors, banks, market makers, asset managers and professional services companies who can guide companies through their fundraising journey.

The UK is an attracting listing location for prospective issuers.

106

Issuer countries across all asset classes at the LSE

300

Nearly 300 foreign companies listed on the LSE, one of the most international stock exchanges globally

No. 1

stock exchange in Europe by further issuance value in 2023

Compelling investment opportunities

The UK is home to a concentration of tech, fintech, artificial intelligence and other fast-growing sectors that provide excellent investment targets. London’s start up ecosystem ranks second globally, only behind the Silicon Valley. The UK is home to 175 unicorns, the highest number in Europe.

Underpinned by the UK’s globally recognised regulatory standards and corporate governance, listing at the London Stock Exchange represents a stamp of quality on what investors are trading on. Foreign ownership in the UK stock market had gradually increased to 56% in 2020, reflecting UK listed companies’ appeal to international investors.

Download the brochure for more on the UK’s investable FPS tech sector

UK financial and professional services tech:
innovation and investor opportunity

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Equity financing

The equity financing hub for global businesses