Startups and scaleups in the UK secured over $9 billion in venture capital funding during Q3, marking the second-highest quarterly total on record. This amount is also the largest for a third quarter since 2021, bringing the year-to-date total to $17.3 billion, which matches the total raised throughout all of 2024.
According to analysis from HSBC Innovation Banking and data provider Dealroom, the UK is poised for its best funding year since 2022, with projections of around $23 billion by year-end. The report highlights an increase in both the value and number of deals, including 12 transactions exceeding $100 million and two multibillion-dollar deals.
Fintech continues to lead as the most funded sector, attracting $5.3 billion from venture capital investors so far this year, including $2 billion raised by Revolut. Additionally, the UK is outpacing its European counterparts; the $17.3 billion raised so far exceeds the combined totals of Germany, Switzerland, and France, the next three highest countries in funding.
“UK venture capital has rebounded with strength across all stages this year,” noted Simon Bumfrey, head of banking at HSBC Innovation Banking. “The return of billion-dollar megarounds, alongside record early-stage activity, signals renewed investor confidence in the UK’s innovation economy.”