UK startups and scaleups secured $9billion in enterprise capital funding within the third quarter of 2025, the second-highest third-quarter whole on file and the strongest since 2021. The findings, from a brand new evaluation by HSBC Innovation Banking UK and Dealroom, point out a major rebound in investor confidence within the UK’s innovation economic system.
12 months-to-date funding now stands at $17.3billion, a determine that already equals the full-year whole for 2024. The UK is on observe for its finest funding yr since 2022, with a projection to shut 2025 at $23.1 billion.
The return of megarounds and progress throughout all levels
A key driver of the third-quarter surge was the return of large-scale funding rounds. The report recognized 12 offers of $100million or extra, almost matching the full of 14 such offers from the earlier two quarters mixed.
Notably, the quarter noticed two billion-dollar raises: Revolut’s landmark $2billion funding spherical and NScale’s $1billion spherical. This marks the primary time since 2022 that UK firms have secured a number of billion-dollar investments in a single yr.
The constructive momentum was not restricted to late-stage firms. Sequence A exercise additionally reached a seven-quarter excessive, with 46 rounds accomplished, signalling renewed power and investor urge for food on the early levels of the funding lifecycle.
Fintech extends its management because the UK’s top-funded sector
Fintech remained the UK’s most funded innovation sector, attracting a complete of $5.3billion to date this yr. Within the third quarter, Revolut’s vital elevate was accompanied by different main fintech funding rounds, together with a $160million Sequence B for Xelix and a $120million enterprise capital spherical for Tide.
Even when excluding the Revolut deal, the UK fintech sector’s funding whole nonetheless outpaced that of healthcare, the second-largest sector, which secured $3.2billion.
The UK additionally continues to steer its European friends in attracting enterprise capital. The $17.3billion invested in UK firms year-to-date is bigger than the mixed totals of the following three largest European markets: France ($6.3billion), Germany ($6.0billion), and Switzerland ($2.7billion).
Simon Bumfrey, head of banking at HSBC Innovation Banking UK, commented: “UK enterprise capital has rebounded with power throughout all levels this yr. The return of billion-dollar megarounds, alongside file early-stage exercise, alerts renewed investor confidence within the UK’s innovation economic system. Fintech stays the UK’s flagship sector, whereas the power of well being tech and different high-growth areas demonstrates the breadth of our ecosystem. With regional hubs additionally attracting a rising share of capital, the UK is proving itself not solely as Europe’s main tech hub however a worldwide centre the place innovate concepts scale into profitable, impactful companies.”
The report additionally highlighted the continued progress of funding past London. Of the 1,458 funding rounds recorded in 2025, 45 per cent have been accomplished outdoors of the capital. The highest regional hubs for enterprise capital funding have been Cambridge ($2billion), Oxford ($406million), and the Cardiff-Newport space ($172million).
Liz Kendall, secretary of state for science, innovation and know-how, mentioned: “This funding is a testomony to British enterprise and innovation. It is usually additional proof that the UK is the vacation spot of selection on the subject of worldwide funding. This authorities is set to do every thing it might to make the UK the very best place on the planet to start out, nurture and develop a enterprise.”
