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A Cautious Revival: UK Series A Finds Its Footing in Q1 2026

The latest VenturePath Venture Bulletin for Q1 2026 points to a tentative recovery in UK venture activity at Series A level - though the picture at Series B gives pause for thought.


After a subdued Q4 2025, Series A deal volumes crept back up, rising 17.2% quarter-on-quarter to 116 deals, and modestly ahead of Q1 2025's 94 deals. Capital deployed edged up to £546.5m. On the surface, this is a welcome stabilisation for UK scaleups navigating a challenging funding environment.


But dig into the detail and a more nuanced story emerges:


  • Widening Access, Smaller Cheques: Average deal size dipped slightly to £4.7m, suggesting that while more companies are getting through the door, investors are not writing larger cheques. Access is broadening - but selectivity remains.


  • Volume Without Velocity: The uptick in deal count is welcome, but with investment broadly flat year-on-year, this looks more like consolidation than a genuine growth trend. The UK scaleup ecosystem needs momentum, not just stability.


  • Series B Softening: The more pressing concern is at Series B. Deal volumes fell from 40 to 36, and total capital invested dropped from £784m to £667.6m — a £116m decline in a single quarter. For companies that have navigated Series A, the path forward is getting harder.


As VenturePath Proposition Lead Ian Merricks puts it: just 152 UK companies were able to access Series A or B funding in Q1. That number should be a rallying call for investors, policymakers and ecosystem partners alike.


The UK ScaleUp Investment Mission continues to work across the venture ecosystem to surface high-potential scaleups and improve access to the capital they need to scale globally. The Q1 data is a reminder that green shoots are fragile - and that the structural barriers to scaleup funding have not gone away.


Read the full Q1 2026 Venture Bulletin for:

  • A full breakdown of UK Series A and Series B volume and value trends

  • Quarter-on-quarter and year-on-year comparisons

  • Expert analysis from Ian Merricks and the Sifted research team


Read the full Q1 2026 Venture Bulletin for our comprehensive analysis of the UK scaleup landscape.

Subscribe to the Venture Bulletin to stay updated with future insights, data, and funding trends.

 
 
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