44%
AI companies accounted for 44% of total equity investment into smaller businesses in 2025, the highest share on record
26%
AI represented more than a quarter (26%) of all deals, nearly doubling its share since 2022
+48%
Investment in AI-related deals rose by 48% year-on-year, highlighting strong investor appetite
15%
The British Business Bank continued to play a significant role across the market, supporting 15% of all deals and 16% of investment between 2023 and 2025
23%
The top 10 fundraisings accounted for nearly a quarter (23%) of all investment, the highest level since 2020
The North West
The North West of England saw one of the largest increases in equity investment, with investment levels rising 82% in 2025, alongside strong growth in Scotland (74%) and the South West (104%) whilst London has become less dominant
Seed & Venture Stage
Seed and venture stage deals were 27% and 13% lower respectively in 2025
Sectors
The Digital and Technologies sector was the largest recipient of equity investment
Investment Value
Advanced Manufacturing and Digital and Technologies saw the largest increases in investment value across the IS-8 sectors in 2025, of 49% and 21% respectively
+95%
Funding for UK university spinouts has grown strongly in recent years, with venture capital deal volumes up by 95% in 2021-2025 compared to 2016-2020 outpacing the United States, Germany and France
The UK
The UK had the highest number of venture capital-backed spinouts among international comparators, including the United States, Germany and France when controlling for the size of the research base
32%
Several exceptionally large US equity mega-deals in 2023-2025 inflated the VC gap with the UK to 32% (adjusted for size of economy)
£4bn
The British Business Bank has accelerated its pace of investment, increasing annual deployment by two‑thirds. It is also deploying £4 billion to support the most promising businesses across the government’s eight Industrial Strategy sectors