Royal Academy of Engineering – State of UK Deep Tech, 2025
The report focuses on the UK deep tech ecosystem in 2025.
It highlights that since 2019, UK deep tech startups have attracted $43.7 billion in venture capital, ranking third globally behind the US and China. The ecosystem includes thousands of companies valued at $155 billion, with over 50 firms reaching valuations over $1 billion or revenues over $100 million. Deep tech accounts for 31% of all UK VC funding, triple the share from a decade ago. Academic spinouts make up 34% of the ecosystem and contribute significantly to value creation. UK deep tech startups raise larger funding rounds at every stage and progress better from seed to Series A compared to other tech sectors, though conversion rates decline at Series D. Deep tech underpins five of the eight growth-driving sectors in the UK Industrial Strategy, including advanced manufacturing, clean energy, digital technologies, defence, and life sciences. It is central to the UK’s industrial and economic growth ambitions.
