H1 2026 July 2026 UK startups H1 2026 raised $17B, the strongest opening in four years The UK raised more thanFrance, Germany, andSweden combined UK VC more than doubledyear-on-year: $17B in H12026, up 102% on H1 2025 UK AI startups raised$12.6B in H1 2026 from297 rounds — a newannual record in just sixmonths (74% of all UK VC) This is a second straight half-year ofgrowth from $15.2B in H2 2025. UK VC isnow near the all-time H1 record of$20.8B set at the 2022 peak. The UK led European growth at +102%year-on-year, the highest increaseamong Europe's top 10. 19 of the 28 H1 2026 mega rounds weresecured by AI, including all four $1B+rounds: Isomorphic Labs ($2.1B), Nscale($2B), Wayve ($1.2B), IneffableIntelligence ($1.1B). 68% of UK VC came from late-stagerounds, compared to 59% acrossEurope — the highest concentrationamong Europe's largest markets. The UK's $1.7 trillion innovationeconomy has grown 6.7x in a decade,and now counts 217 unicorns - with 18more added in 2026 so far. Enterprise software is where AI isthriving most: 113 rounds raised $5.2Bin H1, followed by Health at $2.6B with52 rounds, then Hosting at $2.1B (4rounds) and Robotics at $1.5B (22rounds). The UK takes 41% of European DeepTech & Life Sciences funding in H1 2026,up from 23% in H2 2025. At $10.3B, thisis more than Germany, France, Swedenand Switzerland combined. “The first half of 2026 has shown the strength and maturity of the UK's innovation ecosystem. At a timewhen investors remain selective, the UK continues to attract capital at a scale unmatched anywhereelse in Europe. This reflects the quality of our founders, the depth of our research base and our abilityto build companies with global ambition. Our H1 Innovation Update, produced in partnership with Dealroom, captures that momentum. UKstartups raised $17 billion in venture capital during the first six months of the year – the strongest firsthalf since 2022 and a 102% increase on H1 2025. One theme stands out throughout this report. AI is driving investment and innovation across the UKeconomy, accelerating progress in fields ranging from life sciences and advanced computing toenterprise software and industrial technologies. As adoption continues to broaden, AI continues tocreate new opportunities for founders, investors and businesses across sectors. Equally striking is the breadth of investment taking place across the UK. Record levels of later-stageinvestment, combined with major funding rounds across AI, semiconductors, quantum computing andbiotechnology, demonstrate the UK's growing ability to develop companies capable of competing onthe global stage. Increasingly, these businesses are emerging from innovation hubs across the country,reinforcing the importance of strong regional ecosystems alongside London's continued success. The UK consistently delivers exceptional innovation outcomes relative to its size. Sustaining thatmomentum will depend on ensuring ambitious founders can continue to access the capital, expertiseand support needed to scale. At HSBC Innovation Banking, weʼre proud to support the founders, investors and innovators shapingthat future. We remain totally committed to helping the UKʼs most ambitious companies scale andunlocking the full potential of this extraordinary community.” 1UK Venture Capital in H1 2026 2AI Dominance Continues3State of UK tech UK startupsraised $17B in H12026, thestrongestopening half-yearsince 2022 UK VC more than doubledversus H1 2025, with $8.6Bmore invested in the first halfof 2026. UK VC keeps rising: $17B in H12026, up from $15.2B in H22025, a second straighthalf-year of growth. The UK remainsthe #1 countryin Europe byVC investmentin H1 2026 At $17B, the UK accounts for39% of all VC investment inEurope, and more than thenext 3 countries combined. The UK also led on growth, up102% year-on-year, thehighest increase amongEurope's top 10. EnterpriseSoftware leadsUK industries inH1 2026 by VCinvestment. Enterprise Software, Health,and Hosting top the tablebecause a handful of large AIrounds dominate. Hostingreached $2.1B on just 4rounds versus Fintechʼs $1.4Bacross 105. Enterprise Software andHealth are the UKʼs deepestmarkets, while Fintech andEnergy show the broader,more distributed VC activity. View online » Late-stagemegaroundsdrove UK VC to$17B in H1 2026,nearly double ayear ago Late-stage made up 68% ofH1 2026 funding, up from42% a year earlier. $250M+rounds alone hit a record$8.6B making up 51% of thetotal. Late-stage megarounds led UK VC in H1 2026 with $11.5B raised. Breakout andearly stage contributed $3.8B and $1.7B respectively UK VC skewsheavilylate-stagecompared to therest of Europe 68% of UK VC investment inH1 2026 came from late-stagerounds, compared to 59%across Europe, the highestshare among Europeʼs largestVC ecosystems. $250m+ rounds aloneaccount for 51% of UK VC,compared to 40% in Europe. The biggest UKventure capitalrounds in H1 2026 UK startups completed 837rounds in total in H1