According to the UK Tech 9M 2025 Report by Tracxn, British tech companies attracted $12 billion in equity funding between January and September, placing the country just behind the United States and ahead of India and Germany.
The report highlights a year of steady momentum for the UK tech ecosystem, underscored by billion-dollar rounds, sectoral growth, and significant merger and acquisition activity. Despite broader global market volatility, the country’s tech sector continues to draw strong investor confidence and demonstrates remarkable resilience.
Funding Overview
Total funding reached $12.0 billion in 9M 2025, up 8% from $11.0 billion during the same period in 2024, though slightly below the $12.3 billion raised in 2023. The data reflects a stabilising market that continues to attract both domestic and international investors.
Seed-stage funding grew sharply to $1.6 billion, a 31% increase from the previous year, suggesting healthy activity among early innovators. Early-stage funding fell to $4.7 billion, down 15% year over year, indicating some caution among Series A and B investors. Late-stage funding rose strongly to $5.7 billion, up 36% from 2024, as mature startups attracted larger rounds to fuel expansion.
Top Performing Sectors
Enterprise Applications dominated the landscape with $6.6 billion in funding, representing a 39% increase from the prior year. FinTech followed with $3.0 billion, a decline of 21% compared to 2024. The standout performer was Media and Entertainment, which saw a surge to $1.9 billion—an increase of more than 1000% from 2024 levels—driven by major streaming, gaming, and content technology investments.
Major Funding Rounds and Unicorns
The UK recorded 20 rounds of $100 million or more during the period. Notable deals included DAZN’s $1.8 billion in funding across two rounds, Nscale’s $1.1 billion Series B, and Isomorphic Labs’ $600 million Series D.
Three new unicorns emerged in 2025, compared to four in 2024 and two in 2023, reflecting continued but selective investor appetite for scaling startups.
Acquisitions and IPOs
The mergers and acquisitions environment remained robust, with 341 deals completed—virtually unchanged from 2024 and slightly above 2023’s total. The largest transaction of the year so far was Global Payments’ $24.3 billion acquisition of Worldpay, followed by Merck’s $10 billion acquisition of Verona Pharma.
IPO activity also picked up modestly, with four public listings compared to two in 2024. Companies going public included Pattern Com, Quantum Base, RedCloud, and Diginex.
Geographic Concentration and Key Investors
London maintained its dominance as the center of UK tech, accounting for 83% of all funding raised. Cambridge followed at a distant 5%, underscoring the capital’s continued magnetism for capital and talent.
Y Combinator, Fuel Ventures, and Haatch were the most active at the seed stage. AlbionVC, Notion, and BGF led early-stage deals, while Latitude Venture Partners, Durable Capital Partners, and BeyondNetZero were the most active in late-stage investments.
A Global Player with Growing Depth
The United Kingdom’s $12 billion in tech funding places it firmly as a global powerhouse, second only to the United States. While total funding has not yet returned to 2023’s peak, the data shows an ecosystem that is maturing in quality, with deepening capital flows, strong late-stage momentum, and continued investor faith across sectors.
As Tracxn’s report makes clear, the UK continues to be a major force in global innovation—one that blends financial strength with a thriving base of technology talent and entrepreneurial ambition.