State of UK First-time Investment 2026 (Penningtons Manches Cooper)

Summary

• The average first-time equity fundraising fell from £1.97 million in 2024 to £1.67 million in 2025, alongside a 20% drop in median deal value to £0.2 million.p.3
• London represented 49.1% of all UK first-time deal counts and 48.7% of total first-time equity raised in 2025.p.4
• First-time fundraisings outside London increased by 33.2% in 2025, with the West Midlands recording a 95.9% rise in deal volume.p.4
• UK artificial intelligence companies raised £1.45 billion in first-time equity rounds during 2025, up 115% from 2024.p.6

Key insights

1. Bank of England interest rate cuts from 5.25% in August 2024 to 3.75% in December 2025 supported investor appetite and a 29.9% increase in first-time deal volume.p.3
2. For the first time since 2022, more first-time fundraisings were completed outside London than inside the capital in 2025.p.4
3. A single £445 million fundraising by Fidra Energy accounted for over 50% of all first-round equity investment into clean energy in 2025.p.3
4. First-time equity investment into non-AI businesses declined by 9.7% in 2025, leaving AI as the primary driver of market expansion.p.6
5. One-third of companies under a year old that completed a first equity round in 2025 were AI businesses.p.7
6. Ineffable Intelligence raised an £814 million round in H1 2026, accounting for 38.6% of all UK first-time equity raised in that half-year period.p.3