UK startups attracted $17 billion in venture capital during the first half of 2026, more than double the amount raised last year, according to new research from HSBC Innovation Banking and data platform Dealroom.

Funding reached its highest first-half level since 2022, rising 102 per cent from the $8.4 billion secured during the first six months of 2025, according to the report.

AI dominated investment activity, with companies in the sector raising a record $12.6 billion in just six months. This total exceeded every previous full-year AI funding record and accounted for almost three quarters of all UK venture capital investment.

The report said AI startups secured 19 of the UK's 28 funding rounds worth more than $100 million, including all four deals exceeding $1 billion. Enterprise software companies attracted the largest share of AI investment at $5.2 billion, followed by health technology, hosting infrastructure and robotics.

The UK's wider science and technology ecosystem also strengthened its position against European rivals, according to the research. Deep tech and life sciences companies secured $10.3 billion during the period, representing 41 per cent of all investment across those sectors
in Europe, up from 23 per cent in the second half of 2025.

Investments in mature startups represented 68 per cent of total venture capital raised, compared with 42 per cent a year earlier. Funding rounds worth $250 million or more generated $8.6 billion, while Series B and C companies secured a further $3.8 billion.

The largest fundraising rounds included Isomorphic Labs with $2.1 billion, Nscale with $2 billion, Wayve with $1.2 billion and Ineffable Intelligence with $1.1 billion.

Overall, the report said, the UK attracted 39 per cent of all European venture capital investment during the first half of the year, raising more funding than France, Germany, Sweden and Switzerland combined.

Emily Turner, chief executive of HSBC Innovation Banking UK, said: "The first half of 2026 demonstrates the continued strength of the UK's innovation ecosystem, with record levels of investment reflecting growing confidence from both domestic and international investors.
“What is particularly encouraging is how AI is increasingly being applied across sectors,” she added. “We’re seeing it create new opportunities in sectors from life sciences and deep tech to enterprise software, while helping companies compete on a global stage.”

---