Despite fears about the Budget and Donald Trump, venture capital rebounded strongly in 2024 and the view is looking optimistic for the years ahead, says Nicole Lowe

It is fair to say that 2024 was a rollercoaster year when it came to venture capital (VC) investment.

Major elections and political shifts on both sides of the Atlantic created an atmosphere of the unknown for investors with many initially reacting with caution to see how the impact of local and global events would play out before making any major decisions.

Despite this, I am delighted to have seen an overall positive outcome for businesses seeking investment in 2024, with strong signs of this continuing in the early parts of 2025 and beyond.

The recently released KPMG Venture Pulse report covers venture capital trends over the past 12 months showing that the UK attracted the highest level of VC investment in Europe in 2024 after a strong final quarter.

The UK raised a total of £15.5bn VC investment after funding in Q4, jumping by more than a third from £3.1bn to £4.4bn. 

The UK raised a total of £15.5bn VC investment after funding in Q4, jumping by more than a third from £3.1bn to £4.4bn

The strong rebound in Q4 has boosted optimism among investors and founders looking ahead to 2025, with many predicting that the ongoing rise of AI is likely to remain at the forefront of those looking to invest.

But these positive tones have been cited with a degree of caution, with some analysts saying that the impact of both global and domestic events such as the UK Budget measures and the new US President taking office could still contribute to a level of investor caution.