top of page
Search

Scaling New Heights: The UK ScaleUp Investment Report 2026

Last week, we launched The UK ScaleUp Investment Report at the inaugural UK ScaleUp Investment Summit. This report comes at a time when the UK has an unprecedented opportunity to build world-leading businesses, yet faces significant "disconnects" in the funding landscape.


As catalysts of the UK ScaleUp Investment Mission, we have participated in over 75 Government meetings to help determine opportunities to improve the investment landscape. This report is the culmination of that work, providing a clear assessment of our current strengths and the "missing rungs on the funding ladder".


The ScaleUp Funding Gap

While the UK venture capital market remains the third largest globally, the scaling phase is not yet efficient enough.


  • In 2025, over £17 billion was invested in innovative UK companies, but just 22% (£3.8bn) reached emerging scaleups.

  • Roughly 6,000 companies raised seed rounds, but less than 500 raised a Series A.

  • Only 110 companies successfully raised a Series B round (£10-20m).

  • Currently, 93% of seed-funded startups fail to access follow-on funding.


2025 Venture Trends

Our analysis, prepared with our research partner Sifted, shows a "flat" year on most measures, though the UK outperformed several European neighbours.


  • Series A: Deal count increased by 7.1% (470 deals), contrasting with declines in France, Germany, and the Nordics.

  • Series B: Annual deal volume and funding slipped by 3.5% and 2.3% respectively.

  • AI Dominance: AI-native companies saw a 295% increase in funding activity, jumping from 20 companies in 2024 to 79 in 2025.


Policy & The Road Ahead

2025 saw some of the most significant policy changes in a decade, including a £4bn uplift for the British Business Bank and the extension of the EIS sunset clause to 2035. However, as the report highlights, these initiatives have yet to create a real boost to flat Series A and reducing Series B volumes.


Our goal is to drive venture collaboration, ensuring the private and public sectors unite to improve the conditions for success. By increasing both the supply of capital and the readiness of companies to attract it, we can help the UK create more venture-backed scaleup successes.


You can read the full report here. 

bottom of page