UK venture capital matches US long-term returns as newer funds pull ahead
The UK venture capital market has matched the United States on long-term fund performance while its newest generation of funds is outperforming both US and European peers, according to new analysis from the British Business Bank. The Bank’s latest UK Venture Capital Financial Returns report found that UK venture capital funds generated a pooled Total […] The post UK venture capital matches US…
The UK venture capital market has matched the United States in long-term fund performance, according to new analysis from the British Business Bank. The pooled Total Value to Paid-In Capital (TVPI) return for UK venture capital funds between 2002 and 2021 was 1.78x, placing it equal with the US and ahead of other European regions, which stood at 1.67x.
Funds launched in 2020 to 2024 recorded pooled TVPI returns of 1.40x, surpassing US and European peers of 1.24x and 1.27x, respectively. British Business Bank Chief Investment Officer Leandros Kalisperas commented that the UK is closing the gap with the US, matching its returns overall and outperforming among newer funds. This highlights the UK's ability to support innovative businesses from startup through to scale-up.
Notable recent fund closings include QuantumLight's €432 million final close for its second fund, Mouro Capital's €343.7 million first close for its third fund, and 2150's €210 million final close for Fund II. Later-stage UK funds have also shown improved performance, with pooled TVPI returns of 1.91x for funds launched between 2014 and 2019, compared to 1.20x for their US counterparts.
Overall, the UK venture ecosystem is becoming more competitive, backing startups and scale-up companies at various funding stages.
Written by urgent.news from EU-Startups's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
