UK Innovation Update – Q1 2025

The data behind Europe's leading innovation ecosystem, in Q1 2025. Startups, sectors, venture capital and innovation trends. In partnership with HSBC Innovation Banking.

Key findings

• UK startups raised $4.2B of venture capital in Q1 2025, the strongest first quarter since 2022 and 7.7% more than in Q1 2024.
• Health was the UK's most funded sector in Q1 2025 with $1.8B, its second-highest quarter on record and well over double enterprise software's $724.2M.
• The UK led all European countries on VC investment in Q1 2025 with $4.2B, more than twice second-placed Germany's $1.8B.
• The UK has now created 185 unicorns, 71 of them still private, after Isomorphic Labs and Verdiva Bio joined the count in 2025.
• 594 VC-backed UK companies generate $25M to $100M of revenue, 40% of Europe's VC-backed companies in that revenue band.