State of UK Deep Tech 2025 report

The definitive overview of the state of deep tech in the UK in 2025, in partnership with the Royal Academy of Engineering.

Key findings

• UK deep tech startups raised $5.9 billion in 2025 year-to-date, putting the year on track for $7.4 billion and second place on record behind 2021.
• The UK ranks third globally for deep tech VC since 2019 with $43.7 billion raised, behind the US at $628.7 billion and China at $142.7 billion.
• Domestic investors supplied 57% of early-stage UK deep tech funding in 2023-2025 but 18% of the capital in rounds above $100 million, where US investors supplied 59%.
• UK deep tech exits produced nearly $20 billion in M&A value in 2025, including five exits above $1 billion, led by Merck's $10 billion purchase of Verona Pharma.
• Academic spinouts are 34% of UK VC-backed deep tech companies since 2010 but hold 37% of the enterprise value and 43% of those raising $10 million or more.