- UK startups raised $17 billion in venture capital funding during the first half of 2026, marking the strongest opening to a year since 2022 and a 102% increase on H1 2025, according to new analysis from HSBC Innovation Banking UK and Dealroom.
- Record levels of AI investment were a key driver of this growth, with AI startups raising a record $12.6 billion, accounting for nearly three quarters of all venture capital invested in the UK.
- Funding was more than four times higher than H1 2025 and almost four times the previous H1 peak recorded in 2022.
- AI companies secured 19 of the UK’s 28 megarounds during the first half of the year and accounted for all four $1 billion (£750m) funding rounds completed during the period.
- The UK attracted 39% of all European venture capital investment during the period, raising more funding than the next three largest European markets combined.
- Enterprise software attracted the highest levels of AI investment by raising $5.2 billion (£3.9 billion), followed by health at $2.6 billion (£1.9 billion) and hosting at $2.1 billion (£1.6 billion).
- UK companies raised $10.3 billion (£7.7 billion) across deep tech and life sciences during the period, demonstrating the breadth of innovation emerging from the UK’s research and startup ecosystem.
- Late-stage funding drove venture capital investment during the first half of the year, with late-stage rounds accounting for 68% of all capital raised.
UK startups secured $17 billion in funding during H1 2026, a remarkable 102% year-on-year increase. This surge was primarily fueled by a record $12.6 billion in AI investments, which constituted nearly 75% of all venture capital raised in the UK during this period.
The growth in funding was driven by record levels of AI investment, renewed momentum in late-stage funding, and continued strength across deep tech and life sciences. AI companies secured 19 of the UK’s 28 megarounds and accounted for all four $1 billion funding rounds completed in H1 2026.2
Enterprise software attracted the highest levels of AI investment, raising $5.2 billion, followed by health at $2.6 billion and hosting at $2.1 billion. The UK also captured 41% of all European deep tech and life sciences funding, a significant increase from 23% in H2 2025.6
Late-stage funding dominated the market, accounting for 68% of all capital raised, up from 42% a year earlier. The UK attracted 39% of all European venture capital investment, outperforming France, Germany, Sweden, and Switzerland combined.
“The UK's combination of world-class research, entrepreneurial talent and access to capital continues to make it one of the most attractive places in the world to build and scale innovative businesses,” said the CEO of HSBC Innovation Banking UK.
“AI startups raised $12.6bn in H1 2026, accounting for nearly 75% of all UK venture capital deployed. Late-stage funding comprised 68% of capital raised, with 28 megarounds and four deals exceeding $1bn, including $2.1bn for Isomorphic Labs.”
