UK late-stage tech funding posts first growth quarter in two years
Series C and D rounds picked up sharply in Q2, led by climate, security and bio-tools.
UK late-stage technology funding posted its first growth quarter in two years between April and June, with capital flowing disproportionately into climate, security and bio-tools categories.
Early-stage funding remained subdued, suggesting that the recovery is being driven by investors doubling down on existing portfolio companies rather than by new bets.
The shift in mix matters. A recovery weighted toward late-stage rounds tends to favour companies that already exist; an early-stage recovery is the one that produces the companies of the next cycle.
Founders report longer diligence timelines and tougher term sheets, but also a marked thaw in the willingness of US growth funds to lead UK rounds — a pattern absent for much of last year.
If the trend holds into the autumn, several anticipated 2025 IPOs may move forward by a quarter. Bankers, characteristically, are not yet willing to say so on the record.
