Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 14 SEPTEMBER 2026

The Return Of Venture Discipline

Shoosmiths LLP
Shoosmiths LLP
Contributor
Shoosmiths LLP

Shoosmiths LLP

Seamless legal excellence. Empowering clients everywhere We support clients across the UK and...

View firm profile
Explore more from Shoosmiths LLP

The UK venture capital market has rebounded from its 2022-2024 downturn, with funding activity recovering and larger rounds returning, particularly for AI and DeepTech businesses. However, despite improved market conditions, investors maintain strict deal terms focused on founder alignment, governance protections, and exit control. Analysis of proprietary deal data reveals how capital concentration, leaver provisions, liquidation preferences...

United KingdomFinance and Banking
Alistair Hammerton
Alistair Hammerton
Mollie Wilkinson
Mollie Wilkinson

The UK venture market has entered a markedly different phase from the challenging conditions that characterised much of the period between 2022 and 2024. Funding activity has recovered, larger rounds are returning and investors continue to compete for the highest-quality opportunities, particularly in AI, DeepTech and other technology-led businesses capable of demonstrating genuine scale and market leadership. What is striking, however, is that improved market conditions have not resulted in a material softening of deal terms.

One of the defining features of the current market is the concentration of capital around a smaller number of businesses. Shoosmiths is seeing increased investor appetite for companies with proven execution, differentiated technology and a credible route to scale. Whilst funding conditions have improved, competition for capital remains highly selective, with the strongest AI-led businesses attracting a disproportionate share of investor attention. Yet despite

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

FCA Finalises Cryptoasset Perimeter Guidance Ahead Of The New UK Regime

The Financial Conduct Authority has released comprehensive perimeter guidance for the UK's new regulated cryptoasset activities regime, clarifying when firms will need authorization and how the regulatory framework applies to qualifying cryptoassets and stablecoins. The guidance addresses critical questions about scope, territorial application, and the narrower "by way of business" test that determines which entities fall under the new regulatory requirements.
United KingdomFinance and Banking
Katten
Katten
Article

Cryptoasset Regulation: UK Advances Comprehensive Regime As US CLARITY Act Stalls

The UK's Financial Conduct Authority has finalized comprehensive perimeter guidance for its cryptoasset regime, opening a five-month authorization window for firms, while the US Senate's procedural rejection of the CLARITY Act leaves American digital asset regulation to continue through agency action. This divergence highlights fundamentally different regulatory approaches: a legislatively anchored UK implementation path versus US reliance on existing statutory authorities as Congress debates market structu
United KingdomFinance and Banking
PwC Legal Germany
PwC Legal Germany
Article

The Future Of Islamic Finance: Insights From IFN UK Forum 2026

Islamic finance is experiencing rapid global expansion, with assets approaching US$6tn and record sukuk issuance attracting non-traditional investors. The convergence of Shariah-compliant and sustainable investing is creating new opportunities, while AAOIFI Standard No. 62 and tokenisation developments are reshaping how Islamic finance structures are designed and implemented across international markets.
United KingdomFinance and Banking
Walkers
Walkers
Article

New AIM Rules (August 2026)

The London Stock Exchange has implemented sweeping reforms to the AIM Rules, fundamentally reshaping admission requirements, transaction thresholds, and governance obligations for companies on the Alternative Investment Market. These changes eliminate longstanding requirements like working capital statements and corporate governance codes while introducing new features such as capital access windows and special voting shares, marking the most significant overhaul of AIM regulations in recent years.
United KingdomFinance and Banking
Shoosmiths LLP
Shoosmiths LLP
Article

Investment Management Update - September 2026

The Financial Conduct Authority has released a comprehensive package of regulatory updates and findings covering investment management, wealth management, and consumer protection. Key developments include reforms to MiFID costs and charges disclosures, remuneration code changes, AIFM regime overhauls, and detailed reviews of firms' Consumer Duty compliance, financial crime controls, and governance frameworks.
United KingdomFinance and Banking
Macfarlanes LLP
Macfarlanes LLP
Article

Nearly Out Of PERG-atory – But Not Quite Yet: Good News As The FCA Finalises PERG 18 On Cryptoassets, But With Even More Legal Changes To Come

Cryptoasset firms face a rapidly evolving regulatory landscape as the FCA's authorisation gateway opens on 30 September 2026. With the Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026 laid before Parliament and the FCA's finalised PERG 18 guidance published within 24 hours, firms must navigate significant perimeter changes including new stablecoin payment exclusions.
United KingdomFinance and Banking
Travers Smith LLP
Travers Smith LLP
Article

Modernising UK Payments: HM Treasury’s Proposed Overhaul Of The Payment Services Regime

On 14 July 2026, HM Treasury published its long-awaited consultation on modernising the UK’s payment services and electronic money regulatory framework. The consultation is part of the Government’s National Payments Vision agenda, which aims to ensure that the UK has a trusted, world-leading payments ecosystem delivered on next generation technology, while preserving choice for consumers and businesses.
United KingdomFinance and Banking
A&O Shearman
A&O Shearman
Article

SFDR 2.0 – European Parliament Negotiating Position: The Stage Is Set For Trilogue

The European Parliament has published its negotiating position on SFDR 2.0, setting the stage for trilogue negotiations between the Commission, Parliament and Council. With the asset management industry hoping for relief from the complexities of SFDR 1.0, the Parliament's proposals claim to simplify the regime while maintaining credibility of sustainability-related investments.
United KingdomFinance and Banking
Travers Smith LLP
Travers Smith LLP
Article

New AIM Rules (August 2026)

The London Stock Exchange has implemented sweeping reforms to the AIM Rules, fundamentally reshaping admission requirements, transaction thresholds, and governance obligations for companies on the Alternative Investment Market. These changes eliminate longstanding requirements like working capital statements and corporate governance codes while introducing new features such as capital access windows and special voting shares, marking the most significant overhaul of AIM regulations in recent years.
United KingdomFinance and Banking
Shoosmiths LLP
Shoosmiths LLP
Article

The Hillsborough Law Bill: Key Duties And Implications

The Public Office (Accountability) Bill, known as the Hillsborough Bill, is progressing through Parliament with provisions that extend far beyond traditional public bodies. Private sector organisations delivering outsourced public services or supplying critical systems to government may find themselves subject to new statutory duties of candour, criminal liability for failing to cooperate with inquiries, and enhanced scrutiny at inquests. Will your organisation's governance and investigation procedures with
United KingdomGovernment, Public Sector
Shoosmiths LLP
Shoosmiths LLP
Article

Modern Slavery Reporting: Are You Ready For Tougher Rules?

The UK government's Immigration and Asylum Bill 2026 proposes sweeping changes to corporate modern slavery reporting, introducing mandatory content requirements, financial penalties up to £1 million or 1% of turnover, and enhanced board-level accountability. Organizations that have taken a minimal compliance approach to the Modern Slavery Act 2015 face significant reputational and regulatory...
United KingdomCorporate/Commercial Law
Shoosmiths LLP
Shoosmiths LLP
Article

New Express Market route widens AIM’s appeal for overseas companies

London's AIM market has introduced a new Express Market route designed to streamline admission for established overseas companies. The reforms replace the previous Designated Market framework with a broader, more proportionate approach that recognises regulatory scrutiny and public company experience already demonstrated in qualifying international markets. Will this create a genuinely compelling pathway for international issuers seeking access to UK growth capital?
United KingdomFinance and Banking
Shoosmiths LLP
Shoosmiths LLP
Article

UK Cartel Investigation Decision Stretches Two Important Concepts

The UK's Financial Conduct Authority issued a commitment decision involving 11 commodity futures traders, raising critical questions about when traders constitute separate undertakings under competition law and whether UK-based activity on predominantly non-UK exchanges falls within UK competition jurisdiction. The decision highlights significant risks for businesses operating in grey areas of competition law enforcement, particularly regarding trader independence and territorial scope.
United KingdomAntitrust/Competition Law
Shoosmiths LLP
Shoosmiths LLP
Article

Buying A UK Plc: What Catches Overseas Buyers By Surprise

The UK's takeover framework is transparent and internationally respected, yet overseas buyers often struggle not with technical provisions but with the transaction mindset required. Understanding the critical differences between UK public M&A and other jurisdictions—from the binding nature of Rule 2.7 announcements to strict financing requirements and limited contractual protections—can mean the difference between a successful acquisition and costly missteps.
United KingdomCorporate/Commercial Law
Shoosmiths LLP
Shoosmiths LLP
Article

Consultation On The Withholding Tax Regime: What You Need To Know

The UK Government has launched a consultation proposing significant changes to the withholding tax regime on interest payments to overseas lenders. The proposed reforms would shift from HMRC's current gatekeeping role to a self-assessment system where UK borrowers independently determine treaty relief eligibility, fundamentally altering compliance responsibilities and risk allocation in cross-border lending arrangements.
United KingdomTax
Shoosmiths LLP
Shoosmiths LLP