UK startups and scaleups secured $9billion in venture capital funding in the third quarter of 2025, the second-highest third-quarter total on record and the strongest since 2021. The findings, from a new analysis by HSBC Innovation Banking UK and Dealroom, indicate a significant rebound in investor confidence in the UK’s innovation economy.
Year-to-date investment now stands at $17.3billion, a figure that already equals the full-year total for 2024. The UK is on track for its best funding year since 2022, with a projection to close 2025 at $23.1 billion.
The return of megarounds and growth across all stages
A key driver of the third-quarter surge was the return of large-scale funding rounds. The report identified 12 deals of $100million or more, nearly matching the total of 14 such deals from the previous two quarters combined.
Notably, the quarter saw two billion-dollar raises: Revolut’s landmark $2billion funding round and NScale’s $1billion round. This marks the first time since 2022 that UK companies have secured multiple billion-dollar investments in a single year.
The positive momentum was not limited to late-stage companies. Series A activity also reached a seven-quarter high, with 46 rounds completed, signalling renewed strength and investor appetite at the early stages of the funding lifecycle.
Fintech extends its leadership as the UK’s top-funded sector
Fintech remained the UK’s most funded innovation sector, attracting a total of $5.3billion so far this year. In the third quarter, Revolut’s significant raise was accompanied by other major fintech funding rounds, including a $160million Series B for Xelix and a $120million venture capital round for Tide.
Even when excluding the Revolut deal, the UK fintech sector’s investment total still outpaced that of healthcare, the second-largest sector, which secured $3.2billion.
The UK also continues to lead its European peers in attracting venture capital. The $17.3billion invested in UK companies year-to-date is greater than the combined totals of the next three largest European markets: France ($6.3billion), Germany ($6.0billion), and Switzerland ($2.7billion).
Simon Bumfrey, head of banking at HSBC Innovation Banking UK, commented: “UK venture capital has rebounded with strength across all stages this year. The return of billion-dollar megarounds, alongside record early-stage activity, signals renewed investor confidence in the UK’s innovation economy. Fintech remains the UK’s flagship sector, while the strength of health tech and other high-growth areas demonstrates the breadth of our ecosystem. With regional hubs also attracting a growing share of capital, the UK is proving itself not only as Europe’s leading tech hub but a global centre where innovate ideas scale into successful, impactful businesses.”
The report also highlighted the continued growth of investment beyond London. Of the 1,458 funding rounds recorded in 2025, 45 per cent were completed outside of the capital. The top regional hubs for venture capital funding were Cambridge ($2billion), Oxford ($406million), and the Cardiff-Newport area ($172million).
Liz Kendall, secretary of state for science, innovation and technology, said: “This investment is a testament to British enterprise and innovation. It is also further evidence that the UK is the destination of choice when it comes to international investment. This government is determined to do everything it can to make the UK the best place in the world to start, nurture and grow a business.”
