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A Widening Gap: Series B Surges as UK Series A Stalls in Q2 2026

Writer: Ian Merricks
Ian Merricks
Jul 21
2 min read

The latest Venture Bulletin for Q2 2026 tells two very different stories at either end of the growth-stage funding market: a struggling Series A and a booming Series B.


Series A deal volumes fell 7.8% quarter-on-quarter to 107 deals, down from 116 in Q1, and 23% lower year-on-year against Q2 2025. Capital deployed slipped to £507m, a fall of £142m against the same quarter last year. Average deal size held flat at £4.7m.


But dig into the detail and the picture is more concerning still:


  • A Shrinking Pipeline: Around 100 companies broke through to Series A this quarter, continuing a downward trend. Fewer companies reaching this stage means fewer future scaleups coming through behind them.


  • Capital Isn't the Problem: UK VC funding hit £7bn in Q2, its highest quarterly level since Q1 2022. The capital is there - it's just not reaching companies raising £2m-£10m rounds.


  • Series B Pulls Away: While Series A stalled, Series B surged: deal volume rose 75% quarter-on-quarter to 63 deals, and capital invested jumped 74% to £1.16bn. The gap between the two stages is widening fast.


As VenturePath Proposition Lead Ian Merricks puts it: Series A has a disproportionately low and falling share of total venture capital, even as overall funding levels reach a four-year high. That imbalance should concern anyone invested in the UK's pipeline of future scaleups.


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 Q2 data is a reminder that strong headline numbers can still mask a widening gap at the stage where most scaleups are made or lost.


Read the full Q2 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 Q2 2026 Venture Bulletin and subscribe for future insights to stay updated with data and funding trends across the UK scaleup landscape.


The Venture Bulletin is produced by VenturePath and Sifted as part of The UK ScaleUp Investment Mission.

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