Prime Highlights
- UK deep tech investment has reached nearly £5bn in 2025, making it one of the strongest years on record.
- The UK ranks third in the world for deep tech investment, behind only the United States and China.
Key Facts
- Since 2020, the UK has received over 18% of global venture capital investment in quantum, making it the country’s third most-funded deep tech sectorin 2025.
- In 2025, investment levels show a wide gap: the US invested $136bn, China $11bn, and the UK nearly $6bn.
Background
Nearly £4.6bn (almost $6bn) has been invested into the UK’s deep tech sector so far this year, putting 2025 on track to become the second-best year on record, according to a new report from the Royal Academy of Engineering Enterprise Hub.
The report shows that the UK currently sits third worldwide for deep tech venture capital investment, behind only the United States and China. However, the report shows that there is still a big difference in how much countries are investing. In 2025, the United States invested about $136bn, China put in $11bn, while the UK contributed nearly $6bn.
Ana Avaliani from the Enterprise Hub said that even though the sector is growing, many companies still struggle to secure larger, later-stage funding needed to expand.
The report shows that 77% of U.S. deep tech investment went into AI, compared with 65% in France and 52% in Germany. The UK devoted 31% of its venture capital spending to deep tech, aligning more closely with European and global averages.
The UK is growing strongly in areas like quantum, techbio, biotech, medicines, and medical devices. Since 2020, it has attracted over 18% of global investment in quantum, making it the UK’s third most-funded deep tech sector in 2025.
The report also reveals that UK startups are more likely to progress from seed to Series A funding rounds compared with the rest of Europe.
The sector continues to turn out high-performing companies, with more than 50 UK businesses now valued at over $1bn or generating over $100m in revenue.
In 2025 alone, deep tech activity resulted in nearly $20bn worth of mergers and acquisitions, including five exits exceeding $1bn.
The Enterprise Hub recently opened a new location in Sheffield, offering equity-free funding, training and industry-led mentorship to support engineering and technology entrepreneurs.
This marks the Academy’s sixth regional hub, joining sites in Belfast, Swansea, Glasgow, Liverpool and Newcastle.
South Yorkshire Mayor Oliver Coppard said the opening strengthens the region’s innovation landscape, adding that South Yorkshire has the “vital ingredients” needed to expand its footprint in deep tech.