The UK Takes The Lead In European Tech This Year So Far

The UK has outperformed the rest of Europe in technology funding this year. Innovation companies raised $9 billion in venture capital during the third quarter, bringing the total to $17.3 billion so far in 2025. Dealroom, together with HSBC Innovation Banking, said the country is on track to end the year with more than $23 billion raised. That would make it the 3rd highest total ever recorded, behind only 2021 and 2022.

The amount raised this year has already passed the total from 2024. The third quarter was the second-strongest on record, topped only by the same period in 2021. Funding went up across all stages of investment, though the biggest increase came from deals worth $100 million or more, which grew more than 400% compared to the previous quarter.

Across Europe, the UK has stood out as companies based in Britain have attracted more investment in 2025 than those in France, Germany and Switzerland combined. That difference shows how London and other British cities continue to draw the most investor attention in Europe’s technology scene.

Fintech continues to draw the largest amount of funding in the UK. A large share of that is tied to Revolut’s $2 billion round, which is expected to close soon. Other areas seeing strong interest are healthtech, hosting, and energy. While much of the United States’ funding has gone into artificial intelligence, the UK’s late-stage investments have been more spread out. Of the 12 deals worth more than $100 million this quarter, only three went to AI companies: Nscale, Signal AI, and CuspAI.

Why Is Quantum Attracting New Money?

Deep tech has gained new attention, especially quantum computing. Startups in the UK’s quantum field have raised $688 million in 2025, setting a new record. If the same pace continues through the last quarter, the year could close at $917 million. That would be more than twice last year’s total, though from a smaller starting point.

Investment in quantum technology has been helped by wider interest in the field. Nvidia has made some big investments there, and Google has once again claimed to have reached quantum advantage. These events have helped UK startups attract more funding from both local and international backers.

The country’s strength in deep tech adds to a growing list of achievements this year. Thirteen new unicorns have been created in the UK in 2025, more than any other European country. The United States is still far ahead, with 91 new unicorns, but the UK has held 2nd place.

How Many Unicorns Does The UK Have?

In total, the country is now home to 198 unicorns and 241 companies that make at least $100 million in annual revenue. Of these, 120 fall into both groups. These numbers suggest that many British technology companies are reaching stable growth rather than quick, short-lived peaks.

A Tech.eu Q3 2025 report found that European technology companies raised €21 billion across more than 900 deals during Q3. About 14.1% of those deals were seed rounds, adding up to €587.8 million. 3 of the 10 largest seed rounds went to companies based in the UK.

If things keep going this way, 2025 could be the year for a full rebound for the UK’s venture capital market after quieter years in 2023 and last year. While other European regions have yet to regain momentum, the UK’s results are surely a sign of renewed energy in its technology economy.