Financing Opportunities for the Creative Field

In the dynamic landscape of the UK's creative industries, venture capital (VC) investment trends have shown regional variations and evolving strategies, driven by both public and private sector initiatives.

United Kingdom overall and key trends:

The British Business Bank (BBB) is playing a significant role by mobilising new capital focused on scaling UK growth companies, including creative-sector firms. The British Growth Partnership (BGP), launched by the BBB, plans to open new venture funds primarily targeting later-stage growth rounds (Series C+), with significant capital deployment planned, potentially raising hundreds of millions of pounds. This reflects a broader push to scale high-potential firms in strategic sectors across the UK [1].

Media and creative sectors are witnessing a rise in mergers and acquisitions (M&A) activity and venture interest. Notable trends include cross-border deals and expansion into adjacent markets like live events, gaming, and content production. Private equity is increasingly driving growth investments after a period of defensive consolidation, especially in mid-market creative companies focused on AdTech, Connected TV, social media, and social commerce [3].

The UK advertising sector, which is closely tied to creative industries, saw an 8% growth in ad spend in Q1 2025 to £10.6bn, suggesting underlying vitality in the sector that can attract VC confidence [2].

Regional trends:

In the Midlands, unlike the national trend of falling investment (from £3.8bn in Q1 to £2.6bn in Q2 2025 nationally), venture capital investment bucked the trend by experiencing growth. This indicates a strong regional dynamism in venture funding, potentially impacting creative and tech startups in that region [5].

The South East and London remain hotspots especially for start-ups, including numerous unicorns, with the UK boasting a unicorn ecosystem valued at over $205 billion largely driven by tech and fintech but also encompassing creative-tech overlaps [4].

Summary of VC focus in creative industries by region:

| Region | Trend Highlights | Notes | |---------------|---------------------------------------------------|----------------------------------------------| | UK-wide | British Business Bank’s strategic growth funds; focus on scaling mature startups; increased M&A activity in media and content | Large-scale public capital mobilization [1][3] | | London/South East | Concentration of unicorn startups and high-value tech ventures including creative-tech | Dynamic startup ecosystem valued at $205bn+ [4] | | Midlands | VC investment rising despite national drop; potential growth area for creative startups | Contrasts with national downturn Q2 2025[5] | | Other regions | Increasing cross-border M&A interest, targeting growth sectors like gaming and content production | Reflects globalizing strategy of investors [3] |

Overall, venture capital investment in UK creative industries in 2025 is characterized by strategic public-private collaboration to scale companies, a resurgence in media-related M&A with an international outlook, and notable regional divergences with the Midlands standing out positively amid a broader national pullback [1][3][5].

The report, titled 'Growth finance for the creative industries', was published by the Creative PEC State of the Nations Research Series in 2024. The report, authored by Dr Josh Siepel from the University of Sussex and the Creative PEC, Dr Sawan Rathi, and Marc Cowling from the University of Sussex and Oxford Brookes University, respectively, delves into various aspects of the creative industries, such as foreign direct investment, place-based approaches to supporting culture, and the important role of higher education in the arts and culture sectors.

The report's findings and data should be cited as Siepel, S, Rathi, S, and Cowling, M (2024) 'Growth finance for the creative industries', Creative PEC State of the Nations Research Series. United Kingdom: Creative Industries Policy and Evidence Centre (Creative PEC). DOI: 10.5281/Zenodo.13889750.

[1] British Business Bank (2025) Scaleup Report. [2] Advertising Association (2025) Advertising Expenditure Report Q1 2025. [3] Dealroom (2025) Venture Capital in the UK: Q1 2025 Review. [4] Tech Nation (2025) UK Tech Nation Report 2025. [5] Beauhurst (2025) UK Venture Capital Investment Report Q2 2025.

The British Business Bank (BBB) focuses on mobilizing new capital for scaling UK growth companies, particularly in the creative sector, to help drive innovation and talent in the economy.
The British Growth Partnership (BGP), backed by the BBB, aims to open new venture funds targeting later-stage growth rounds with significant capital deployment, potentially raising hundreds of millions of pounds.
The UK's media and creative sectors have witnessed an increase in mergers and acquisitions (M&A) activity and venture interest, with cross-border deals and expansion into adjacent markets such as live events, gaming, and content production.
Private equity is leading growth investments in mid-market creative companies, focusing on sectors like AdTech, Connected TV, social media, and social commerce.
Unlike the national trend of falling investment, venture capital investment in the Midlands has experienced growth, indicating a strong regional dynamism in venture funding for creative and tech startups.
The South East and London remain attractive regions for start-ups, including numerous unicorns, with a unicorn ecosystem valued at over $205 billion, encompassing creative-tech overlaps.
The report 'Growth finance for the creative industries', published by the Creative PEC State of the Nations Research Series in 2024, explores various aspects of the creative industries, including foreign direct investment, place-based approaches to supporting culture, and the role of higher education in arts and culture sectors.
The evidence gathered by the report's authors, including Dr Josh Siepel, Dr Sawan Rathi, and Marc Cowling, highlights the importance of strategic public-private collaboration, policy-making, education, and internationalisation in developing the creative industries.
The findings and data from this report should be properly cited to credit the authors and the Creative Industries Policy and Evidence Centre (Creative PEC).
Venture capital investment in the UK's creative industries in 2025 involves strategic public-private collaborations, a resurgence in media-related M&A with an international focus, and regional divergences, with the Midlands standing out positively even during a broader national downturn.
By focusing on innovation, talent, and skills in the creative industries, policymakers, investors, and businesses can contribute to the economic development and cultural heritage of the UK while fostering partnerships and investing in education-and-self-development and creative arts clustering.