UK Series A Funding Hits 7-Year Low
- May 27
- 1 min read
New data reveals the stark reality facing UK scaleups as access to growth capital continues to contract
The latest VenturePath Venture Bulletin for Q1 2025 delivers sobering news: Series A funding has reached its lowest point in seven years, with just 65-82 companies securing £2-10m rounds during the quarter.
The Crisis in Numbers
Our analysis, conducted with Dealroom and Sifted Insights, reveals:
Record Low Quarter: Q1 2025 represents the worst quarter for Series A activity in 28 quarters
Sharp Declines: Investment volumes dropped 26% quarter-on-quarter and a third compared to Q1 2024
Broken Funding Ladder: Fewer than 1 in 10 seed-backed companies successfully progress to Series A
The annual trend is equally stark: approximately half a billion pounds less Series A capital is being deployed compared to just two years ago, falling from £3bn in March 2023 to £2.4bn by March 2025.
Why This Matters
These findings highlight exactly why The UK ScaleUp Investment Mission exists - to address the critical funding gap preventing promising startups from scaling. The Mission's focus on Series A access has never been more relevant.
Read the full Q1 2025 Venture Bulletin for our full report on the UK investment landscape.
Subscribe to the Venture Bulletin to receive quarterly insights on UK venture funding trends.
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