UK vs US: Whose Tech Industry Is Performing Better In 2025?

The US still leads when it comes to global technology power. It is home to the world’s most valuable tech companies and the biggest investment networks. But new data from RSM’s June 2025 report and HSBC Innovation Banking paints a different picture for the UK than in the past.

According to RSM’s survey of 300 UK tech leaders, confidence in the country is growing. 74% of them believe the UK is better than the US when it comes to accessing funding or listing a company. That includes 33% who say the UK is much better, and 41% who believe it is slightly better. Only 11% say the US is better. While the US remains dominant in overall size, these numbers show UK-based leaders are not feeling overshadowed.

Part of this might come down to cost. Labour and operating expenses in the US, especially in places like Silicon Valley, are still high. Software engineers in the US earn far more than those in the UK, which may put pressure on startup budgets. Even with lower salaries, UK companies are attracting capital, especially from overseas. The strong US dollar is encouraging more American investors to look across the Atlantic.

 

Where Are Companies Choosing To List?

 

When asked where they would like to list their company, 53% of UK tech firms say they want to go public on the London Stock Exchange. That’s more than the 47% who say they would choose to list in the US. Meanwhile, 42% of firms are also considering Europe. These numbers could mean that confidence in UK markets is returning after a quiet period for IPOs.

There are a few reasons why London listings have slowed down. High interest rates, global uncertainty, and less interest from investors all played a part. But with the UK economy showing signs of recovery, many companies are revisiting the idea of going public at home.

Despite the mixed conditions, the fact that over half of those surveyed still want to list in the UK reflects a vote of confidence in the local system. London is still Europe’s biggest stock market and a global financial centre, even though the last few years have tested that status.

 

 

How Is AI Changing Things?

 

Artificial intelligence has transformed the outlook for tech investment in the UK. New figures from HSBC Innovation Banking and Dealroom show that UK AI startups brought in $2.4 billion (£1.7 billion) in venture capital in just the first half of 2025. That made up 30% of all UK VC investment in that period, the highest share ever recorded.

What is more, AI funding has more than doubled since 2022, when ChatGPT took off. The investment is no longer just concentrated in London. Although the capital still led the way, smaller cities and towns are now seeing strong growth. In the first 6 months of the year, 57 AI funding rounds happened outside London, including in places like Castlereagh in Northern Ireland and Bude in Cornwall.

Some of the biggest funding deals in 2025 so far include $600 million (£439 million) for Isomorphic Labs, $180 million (£131.7 million) for Synthesia, and $72.5 million (£53 million) for Orca AI. These deals reflect strong interest in areas like medicine, media and transport.

 

Is The UK Attracting More Investment Than Other European Countries?

 

The UK has pulled in more tech investment than any other European country in 2025. Total venture capital funding in the UK reached $8 billion (£5.8 billion) in the first half of the year. That is more than what German startups brought in, at $4.4 billion (£3.2 billion), and French ones at $3.2 billion (£2.3 billion).

For the past 6 and a half years, the UK has attracted more than $3 billion (£2.2 billion) in VC funding every quarter. This steady stream of capital could be an indication that investors trust the country’s ability to grow and deliver valuable companies.

Cambridge, Oxford, Cardiff and Glasgow are some of the top areas outside London drawing this attention. These regions are proving that strong tech ventures do not need to be based in the capital to grow.

 

What Does This Mean For Startups In The UK?

 

According to RSM, 150 of the companies surveyed were focused on AI. That matches the trends found by HSBC Innovation Banking. Together, these reports show that UK tech businesses, especially those working in artificial intelligence, are becoming more confident and better supported than in previous years.

The UK has now produced 188 unicorns, meaning startups worth over $1 billion. Of those, 117 have already been sold or floated on the stock exchange. This ongoing success suggests that the UK is no longer simply playing catch up, but is starting to build a stronger base of its own.