UK startups and scaleups raised $23.6 billion in venture capital funding in 2025, up 35% year-on-year, marking the first annual increase in UK VC investment for four years. 

The rebound was driven by stronger late-stage activity and a record year for AI, with megarounds of over $100 million returning in force and Revolut topping the list with a $2bn raise at a $75bn valuation. 

According to HSBC Innovation Banking UK and Dealroom, AI startups pulled in $7.9bn, making up a third of all UK VC investment, while FinTech remained the most funded sector overall with $6.6bn across more than 300 rounds. 

The UK also maintained its position as Europe’s top VC market, with London securing $17.7bn alone and the wider ecosystem boosted by major hubs including Cambridge and Oxford.