Will Clark, Head of Business Development in
28 May 2026
Guinness Ventures recently hosted a small adviser lunch to discuss the evolving UK investment landscape.
A key focus was the recent increase in the amount that can be invested into qualifying companies. This is an important development that we believe could expand the investable universe and influence how portfolios are constructed and diversified.
The discussion explored what this means in practice, from follow-on funding and portfolio construction, to competition, valuation dynamics, and the changing risk/return profile for investors.
Key themes shaping the UK venture market
We also discussed several broader themes shaping the UK venture market.
HSBC Innovation Banking’s 2026 VC Term Sheet Guide, to which Ashley Abrahams, our Head of Origination, contributed, showed that 71% of VCs are optimistic about 2026, while AI now represents the number one UK VC sector.
DeepTech has also grown materially, increasing from 15% to 35% of UK deal volume since 2021.
Capital concentration and valuation dynamics
There was an animated discussion around the increasing concentration of capital into higher-quality businesses.
While the proportion of Series A deals above a £50m pre-money valuation fell from 12% in 2024 to 10% in 2025, the average valuation of those companies increased sharply from £130m to £160m.
In other words, there were fewer breakout companies, but the strongest businesses continued to attract significantly more capital at higher valuations.
The market is becoming increasingly concentrated around quality at the top end, while activity in the middle of the market has softened.
The importance of domestic growth capital
The role of long-term domestic growth capital was another key theme.
While the UK continues to lead at Seed and Series A stage, US investors now account for 37% of later, bigger rounds, including Series B and Series C. This reinforces the importance of maintaining a strong domestic growth capital ecosystem.
Our view
Our view is that this is an exciting and positive development for the market.
Greater flexibility to support strong companies for longer has the potential to strengthen outcomes for investors, founders, and the wider UK growth company ecosystem.
For more on the changing investment landscape, read our articles on EIS changes in 2026, EIS and VCT investing, and how the Guinness EIS works.
A big thank you to the advisers and panel selectors who joined us and shared their perspectives. It was a valuable, thoughtful discussion, and a great opportunity to exchange views on how the market may evolve from here.
Related resources
These related articles may be useful for advisers and investors following the UK venture capital market.