A new report published by Dealroom and HSBC reveals that UK VC investment surged to its highest level since 2022 in the third quarter, as startups, including Revolut and Nscale, completed bumper rounds during the period.
In the third quarter of 2025, UK startups raised $9 billion in venture capital, positioning the UK as Europe’s undisputed VC powerhouse. British startups have attracted more capital in 2025 than companies in France, Germany, and Switzerland combined.
Year-to-date UK VC funding has reached $17.3 billion, already surpassing the entire 2024 total with three months still to go. Should current momentum hold, Britain is on track to close 2025 with over $23 billion raised. This would be the third-highest on record, trailing only the exceptional years of 2021 and 2022.
“After a sustained period of stable investment activity, the data in our Q3 Dealroom report suggests momentum has returned with real confidence,” said Simon Bumfrey, Head of Banking at HSBC Innovation Banking.
“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.”
Deals exceeding $100 million surged more than 400% compared to Q2. Twelve such mega-deals closed during the quarter, accounting for 61% of all UK venture capital raised. Both Revolut and Nscale secured funding north of $1 billion. This is the first time since 2022 that Britain has produced multiple billion-dollar rounds in a single year.
Sector Strengths
Fintech remains king. The sector attracted $5.3 billion in 2025, comfortably leading all industries. Revolut’s $2 billion raise accounts for more than a third of that total, though the final figure may climb higher before closing. Beyond Revolut, the fintech ecosystem is seeing steady growth among scaling firms.
Health follows as a clear second, pulling in $3.2 billion across a diverse array of companies. AI-driven drug discovery platforms like Isomorphic Labs and Charm Therapeutics sit alongside gene therapy specialists such as Trogenix, clinical trial platform Lindus, and surgical robotics firm CMR Surgical.
According to Dealroom, AI-focused software now accounts for nearly half of all SaaS venture investment in Britain, up from just 14% in 2010. Of Q3’s twelve megarounds, however, only three went to AI companies: Nscale, Signal AI, and CuspAI .
The UK’s quantum startup scene is also becoming a force to reckon with. UK quantum startups raised $688 million in the first nine months of 2025, already a record. Dealroom projects the full-year total will reach $917 million, more than doubling 2024’s figure, albeit from a modest base.
“Global investment trends prove confidence in the technology has never been stronger, something we saw firsthand in our own Series B and recent funding rounds of several quantum hardware companies,” said Ashley Montanaro, CEO of quantum startup Phasecraft.
Dealroom notes that the UK is home to 50 funded quantum startups.