How Much Money Have UK Startups Raised This Year?

UK startups raised more than $8 billion in venture capital in the first half of 2025. This is a 3% increase compared to the previous 6 months, according to Dealroom and HSBC Innovation Banking UK. The UK is the top country in Europe for startup funding, securing 30% of the total raised across the continent.

Germany came second with $4.4 billion, followed by France with $3.2 billion. If you think about it, the UK raised more than both of those countries added together. Spain, Sweden, Switzerland, the Netherlands, Ireland, Malta and Italy also made it into the top 10.

London continues to lead, but there has been growth in cities like Oxford, Cardiff and Glasgow. Outside London, Oxford raised 450 million dollars, Cambridge 331 million, Cardiff 172 million and Glasgow 106 million. Even towns such as Bude and Paisley saw funding activity, showing how much the map of tech investment is changing.

 

What Share Of This Money Is Going To AI?

 

AI is taking up a larger share of venture capital than ever before. In 2025 so far, AI startups have raised 2.4 billion dollars in the UK, which is 30 percent of all venture capital raised. Ten years ago, AI accounted for less than 13 percent.

There were 179 AI funding rounds in the UK in the first half of the year. Around 68% were in London, but 57 took place outside the capital. These included funding for firms in places like Diss, Bude, Castlereagh and Paisley.

The biggest AI round came from Isomorphic Labs, which raised 600 million dollars in March. Other large rounds included 180 million for Synthesia and 72.5 million for Orca AI. Altogether, these funding rounds show that AI is no longer limited to one part of the country or one type of business.

 

 

Which Sectors Are Getting The Most Investment?

 

Health and fintech each raised $2.3 billion this year, just behind AI. Health tech saw funding in areas like metabolic health, neurology and synthetic biology. Fintech companies such as FNZ, Zepz and Dojo also pulled in hundreds of millions. FNZ raised $500 million, Dojo brought in $190 million, and Zepz received $165 million.

Enterprise software raised $1.9 billion. Some of this was driven by tools using AI to improve data infrastructure and cybersecurity. Vishal Marria of Quantexa said investors are paying closer attention to resilience and measurable value when they decide where to put their money.

According to Dealroom, 14 separate funding rounds were over $100 million. These “megarounds” contributed heavily to the $8 billion total.

 

Are UK Startups Still Producing Unicorns?

 

The UK has now produced 188 startups valued at over one billion dollars, also known as unicorns. Of these, 117 have already exited. The rest are still operating privately, with 71 unicorns currently worth a combined $229 billion.

New unicorns continue to appear. In the second quarter of 2025, Mubi and Oxford Ionics joined the list. Half of the UK’s unicorns were founded after 2010, and many of them are in AI or health-related fields.

Some leaders in the sector are worried about what happens after startups grow. Carolyn Dawson from Founders Forum Group said that while the UK is good at creating startups, too many of them end up scaling elsewhere. She said that changes are needed so that the most promising companies can continue to grow without turning to countries like the US.

 

What’s Changing In How Companies Grow?

 

Hannah Seal from Index Ventures said that founders are building globally from the start rather than thinking of international expansion later. These companies are hiring talent from around the world and using London as a springboard.

Peter Specht from Creandum added that AI companies are growing faster than before and doing so with very small teams. He gave the example of a company reaching $75 million in revenue with fewer than 50 employees. He also said that newer firms are designing their businesses with AI built into every part rather than just adding it to what they already do.

This year’s funding rounds show that while AI leads the conversation, there’s still room for a range of industries to grow. The spread of investment beyond the big cities also shows a change in where ideas are being built.