AI drives UK startup funding to strongest first half since 2022

UK startups raised $17 billion in venture capital during the first half of 2026, more than double last year’s equivalent total, according to research from HSBC Innovation Banking and Dealroom. Funding hit the strongest first-half level since 2022, rising 102 per cent from the $8.4 billion secured in the first six months of 2025.

AI companies accounted for the bulk of the surge, raising a record $12.6 billion in six months and making up almost three quarters of all UK venture investment. AI startups secured 19 of the UK’s 28 rounds worth more than $100 million, including all four deals exceeding $1 billion, with enterprise software attracting $5.2 billion.

Deep tech and life sciences companies drew $10.3 billion, representing 41 per cent of European investment in those sectors, up from 23 per cent in the second half of 2025. Mature startups represented 68 per cent of total venture capital raised, while rounds of $250 million or more generated $8.6 billion and Series B and C companies secured $3.8 billion.

The UK attracted 39 per cent of all European venture capital investment during the period, more than France, Germany, Sweden and Switzerland combined. Major rounds included Isomorphic Labs at $2.1 billion, Nscale at $2 billion, Wayve at $1.2 billion and Ineffable Intelligence at $1.1 billion.