New analysis of BVCA figures by money.co.uk business loans shows private equity and venture capital investment in the UK’s finance and insurance sector dropped from £3.41 bn in 2023 to £2.50 bn in 2024—a fall of 26.8%, or £913.76 m. This was the fourth-largest sectoral decline, trailing only consumer goods and services, energy and environment, and agriculture.
Despite this fall, government-backed schemes (EIS and SEIS) helped finance and insurance businesses raise £121 m in the past year, an average of £474,510 per company.
Top Movements in UK Private Investment
| Rank | Sector | 2023 (£m) | 2024 (£m) | Change (£m) | Change (%) |
|---|---|---|---|---|---|
| 1 | ICT (Communications, computer & electronics) | 4,116.14 | 10,566.26 | +6,450.12 | +156.7% |
| 2 | Business products & services | 3,145.32 | 6,785.71 | +3,640.39 | +115.7% |
| 3 | Biotech & healthcare | 2,682.09 | 4,542.45 | +1,860.37 | +69.4% |
| 4 | Real estate | 110.24 | 184.34 | +74.10 | +67.2% |
| 5 | Construction | 69.88 | 110.23 | +40.36 | +57.8% |
| 6 | Chemicals & materials | 82.95 | 66.01 | –16.94 | –20.4% |
| 7 | Financial & insurance activities | 3,409.33 | 2,495.57 | –913.76 | –26.8% |
| 8 | Consumer goods & services | 4,018.61 | 2,791.62 | –1,226.99 | –30.5% |
| 9 | Energy & environment | 2,237.43 | 1,150.29 | –1,087.14 | –48.6% |
| 10 | Agriculture | 279.58 | 18.92 | –260.66 | –93.2% |
Expert Commentary
“The key driver of growth is capital. If you miss out on securing external funding, you could risk losing your competitive edge. Securing financial aid can be the boost your business needs to succeed in your chosen industry. For example, securing financial aid allows your business to scale up faster than relying on company cash flow. You can hire extra staff, invest in equipment, or take on more projects, which could allow you to seize opportunities in new markets.
“In addition, access to funding at the beginning of your business journey doesn’t just support your current operations; it provides the freedom to innovate. With financial aid in place, you can invest in research and development and explore new technologies. Whether building a more sustainable process or introducing a new product to market, funding can help bring your best ideas to life faster.
“However, not every sector attracts consistent investment. But even if your business operates in a less-invested industry, that doesn’t mean you’re out of options. For sectors with low or declining levels of investment, business loans can help bridge the financial gap and give you quick access to funds to scale your business. Whether you’re investing in equipment or expanding operational capacity, loans offer predictable, scalable support that isn’t tied to investor preferences.”
— Joe Phelan, business loans expert, money.co.uk
Unlocking New Recommendations
The UK Investment Association has released fresh proposals aimed at reversing declines in private market funding. If adopted, these measures could encourage greater equity and debt investment into UK firms, including those in finance and insurance.
