Almost £5bn venture capital investment made into UK deep tech this year, report claims
Almost $6bn (£4.58) venture capital investment has been made into deep tech in the UK so far this year, according to a new report, with the year set to be the second strongest on record.
The figures come in a new report from the Royal Academy of Engineering Enterprise Hub, which shows that UK deep tech venture capital investment currently ranks third globally behind the USA and China.
The report notes, however, that behind the rankings, the details of amounts invested in deep tech highlight a wide gulf between the USA and the rest of the world.
In 2025 the USA invested $136bn (£104bn), with China investing $11bn (£8.4bn) and the UK nearly $6bn.
Ana Avaliani, director at the Royal Academy of Engineering Enterprise Hub said: "The growth of deep tech companies in the UK is stymied by number of factors including access to late-stage funding.”
Released today, the Royal Academy of Engineering Enterprise Hub report on the State of UK Deep Tech shows the USA spent 77 per cent of its deep tech venture funding on AI.
Both France and Germany have also increased funding in this area, spending 65 per cent and 52 per cent respectively.
For the UK, the figures sit at around 39 per cent and for China, 42 per cent.
The USA invested 59 per cent of venture capital funding into deep tech, compared with 43 per cent in China and 31 per cent in the UK, which is more representative of European and global averages.
The report also highlights that the UK has global strengths in quantum, techbio, biotech as well as pharma and medical devices. In quantum, the UK made up over 18 per cent of global VC funding since 2020. It is the third most funded sector in the UK in 2025.
The report shows that UK startups are more likely to progress from seed to series A funding rounds than the rest of Europe.
Over 50 UK companies have reached an over $1bn valuation or over $100m revenue. 2025 was remarkably active, with nearly $20bn in mergers and acquisitions value and five over $1bn exits.
The report comes after the Academy recently launched its new Enterprise Hub in Sheffield, designed to support local engineering and technology innovators and entrepreneurs with equity-free funding, smart and flexible training and mentoring from industry experts.
The hub is the Academy’s sixth location outside of London, alongside Belfast, Swansea, Glasgow, Liverpool and Newcastle.
In a statement issued at the time of the opening, the academy said it believes that Sheffield and the wider South Yorkshire region hold the “vital ingredients” to grow the number of local emerging deep tech companies.
South Yorkshire Mayor Oliver Coppard said at the time that the hub adds “further strength” to the region’s local innovation ecosystem.