Innovation
UK Innovation Update: Q3 2025
- Innovation
- Report
- 7 minutes read
Our UK Innovation Update for Q3 2025 – developed in partnership with Dealroom – provides an essential overview of the emerging opportunities across the local innovation ecosystem. The report suggests that, after a sustained period of stable investment activity, momentum has returned with real confidence.
- UK innovation companies raised $9B in venture capital in Q3 2025, meaning it was the second highest Q3 on record for UK venture capital investment, and the highest quarter since 2022.
- UK VC investment grew at every stage in Q3. Early, breakout and late-stage rounds all grew year on year and quarter on quarter.
- With $17.1B raised in 2025 to date, the UK has raised more VC investment than France, Germany and Switzerland combined.
The UK continues to present itself as Europeʼs leading tech hub and a global centre for innovation.
The return of multiple mega-rounds ($100m+) sends a strong signal that global investors continue to see the UK as a place where world-class ideas can scale into world defining companies.
At the same time, record Series A activity through to late-stage billion dollar plus raises – demonstrates a depth and resilience that few markets can match.
This breadth matters. With almost half of all 2025 funding rounds taking place outside London, regional hubs such as Cambridge, Oxford, Glasgow and Manchester are proving that innovation thrives nationwide. Together, these trends tell a broader story: one of maturity, international credibility, and enduring confidence in the UKʼs ability to produce globally relevant companies.
Multiple segments in the spotlight: Fintech leads, but innovation is everywhere
While Fintech continues to stand out as the UKʼs flagship sector, growing interest in AI infrastructure, energy and climate tech are sectors with keen investor interest.
But that’s only part of the story.
Sustained interest in healthtech and therapeutics, AI driven SaaS, quantum and deep tech continue to advance rapidly, testament to the broad opportunity across the ecosystem.
Simon Bumfrey, Head of Banking, HSBC Innovation Banking UK"Near-record levels of investment into ideas, talent, and ambition are reinforcing the UKʼs role as Europeʼs leading tech hub and a global centre for innovation."
Any opinions expressed are merely opinions and not facts. All information in this document is for general informational purposes and not to be construed as professional advice or to create a professional relationship and the information is not intended as a substitute for professional advice. Nothing in this document takes into account your company’s individual circumstances. HSBC Innovation Banking does not make any representations or warranties with respect to the accuracy, applicability, fitness or completeness of this document and the material may not reflect the most current legal or regulatory developments. HSBC Innovation Banking disclaims all liability in respect to actions taken or not taken based on any or all of the contents in this document to the fullest extent permitted by law. Nothing relating to this material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
