Authors Martha Dacombe Emerging Technologies Policy Lead, Startup Coalition Vinous AliDeputy Executive Director, Startup Coalition AboutStartup Coalition Startup Coalition, formerly the Coalition for a Digital Economy (Coadec), is an independentadvocacy group that serves as the policy voice for Britain’s technology-led startups andscaleups. Startup Coalition was founded in 2010 by Mike Butcher, Editor-at-Large of technology newspublisherTechCrunch,and Jeff Lynn,Chairman and Co-Founder of online investmentplatform Seedrs. Startup Coalition works across a broad range of policy areas that matterthe most to startups and scaleups: access to talent, access to finance & regulation. AboutBeauhurst Beauhurst is the ultimate private company data platform. We source, extract and packagedata from thousands of locations to create the best source of information on the UK’scompanies, the investors that back them, and the people that run them. Whether you’reinterested in early-stage startups or established companies, we’ve got you covered. Ourplatform is trusted by thousands of business professionals to help them find, research andmonitor the UK’s business landscape. For more information and a free demonstration, visitbeauhurst.com. Acknowledgements Many thanks to Beauhurst for supplying the data underpinning this Index. Thanks also to theIndexstartups that are profiled in this report, the firms engaged in Startup Coalition'sadvocacywork,and the founders who participated in our AI Founders Survey androundtable discussions. Thanks also to Coreweave for supporting this work. Contents Authors2About Startup Coalition2About Beauhurst2Acknowledgements2Contents3Foreword from CoreWeave4Executive Summary5Introduction6What Sources Inform This Report7The Index: The Stats8UK AI Startups by the Numbers8Reasons to be Cheerful8What is Worth Noting?8Five Spotlighted Firms10The Top 3 Sectors12Business Services: AI as Infrastructure for the Enterprise Economy12Financial Services: London's Legacy Meets AI's Potential12Health: Regional Strength Meets National Need13Where in the Stack Can the UK Succeed?13Government as a Buyer?14Location, Location, Location15Grab Your Passport!18Origin Stories20Where are the Women?20Spinouts21Regional Distribution of Spinouts22Hardware vs. Software23Understanding the Stack24Recommendations27A: Opportunity Everywhere271. Spinouts272. Public Money:273. Doubling down on AIGZ27B: Support to Scale271. Talent whilst Scaling282. Breaking Through the Profit Barrier283. Act as a First Customer28C: Sovereignty281. AI Research Resource (AIRR) for Startups292. Proactivity about Dismantling Outdated Legislation29 3. Act as a Megaphone29Conclusion30Appendix31Methodology31 Forewordfrom CoreWeave CoreWeave is proud to partner with Startup Coalition on the AI Index, a first-of-its-kind reportexamining the UK’s AI startup and scaleup landscape. We are grateful for Startup Coalition’sleadership and rigour in amplifying the voices of the UK’s most innovative companies. This report provides a timely, vital evidence base for policymakers as they work to sustaintheUK’s competitiveness in a rapidly shifting global AI market.At CoreWeave,ourconfidence in the UK’s AI ecosystem is unequivocal. This is reflected in our £2.5 billioninvestment to date, supporting AI-specialised cloud infrastructure across London, the SouthEast, and Scotland. This capacity allows British developers to train and deploy advancedsystems at scale. Our experience has shown that success requires more than just rawpower; it requires coupling compute with the unique software capabilities needed to manageand deploy AI effectively. We view the UK as a global leader in shaping the technical,regulatory, and commercial conditions for responsible AI adoption. The data in this report underlines the strength of this ecosystem. The UK is home to aremarkable concentration of AI startups and scaleups that have collectively raised over £45billionand employs more than 35,000 people. Supported by a world-leading universityresearch base, and ready access to a highly skilled workforce, British AI companies aretranslatingcutting-edge theory into real-world applications across diverse sectors. Ourmission at CoreWeave is to provide the most performant platform and infrastructure onwhich these are powered. Thissector is neither speculative nor theoretical;it is commercially significant andaccelerating.The UK Government,in its AI Opportunities Action Plan,estimates thatwidespread AI adoption could grow the UK economy by an additional £400 billion by 2030.We therefore welcome the Government’s strategic focus on the full technology stack, fromenergy and compute to skills and data. While this direction is encouraging, it is crucial thatthis hard-earned momentum is maintained. As theIndexhighlights, the UK is an excellent place to start an AI company - the reportidentifies a number of our real success stories. The next challenge is ensuring it is equallyeffective at help