The UK market in 2025

The UK equity market in 2025 shows the shape of the problem. Smaller businesses raised £12.3 billion across 2,002 deals, 4% less investment than in 2024 and 17% fewer deals. The money that was raised became more concentrated. The ten largest fundraisings accounted for 23% of investment, the highest share since 2020.

AI took a record share of that market: £5.4 billion through 527 deals, equal to 44% of investment value and 26% of deals. Elsewhere the market thinned. Seed-stage deal numbers fell 27%, while the value of seed investment held at £2.1 billion, so similar capital was spread across fewer companies. At the venture stage, deal numbers fell 13% and investment value fell 18%.

Transmission, not a shortage of work

That is a transmission problem, not an absence of technical work. Early activity can weaken even while a smaller number of larger rounds continue. A company can be founded, and even funded once, and still struggle to raise the capital, find the customers and reach the exit that would let it scale from here.

The European Investment Bank Group has aimed policy at that gap. Its TechEU programme is designed to mobilise at least €250 billion of investment by 2027, from €70 billion of EIB Group equity, quasi-equity, loans and guarantees between 2025 and 2027. The public Markets & Focus PDF prints the mobilisation target as £250 billion. The EIB states it in euros, and the €70 billion is the Group’s own commitment, not the full €250 billion.

The distinction matters. A region can have strong research, capable founders and an active early market, and still lose momentum if later finance, cross-border scale and exits are thin. Through 2027, the test is whether more of what is started here can be financed and built here.

Sources

British Business Bank, Small Business Equity Tracker 2026, published 2 July 2026. £12.3 billion and 2,002 deals in 2025; investment down 4%; deals down 17%. AI companies raised £5.4 billion through 527 deals, 44% of investment and 26% of deals. Ten largest fundraisings were 23% of investment, the highest share since 2020. Seed deal numbers fell 27%, with investment value stable at £2.1 billion. Venture-stage investment value fell 18% and deal numbers fell 13%.
https://www.british-business-bank.co.uk/about/research-and-publications/small-business-equity-tracker-2026

European Investment Bank, press release, 2025. TechEU is intended to mobilise at least €250 billion by 2027, from €70 billion of EIB Group financing in 2025 to 2027.
https://www.eib.org/en/press/all/2025-314-europe-s-innovative-companies-get-boost-as-eib-group-launches-techeu-platform-to-simplify-financing