The UK tech industry has a combined market value of $1.2trn (£886bn) in the first half of 2025, according to new research.
UK tech startups have raised more than $7bn (£5bn) in venture capital investments in the first half of the year, which included the biggest first quarter fundraise of the past three years, according to the Tech Nation 2025 report, released at London Tech Week.
According to the report, the value of the UK tech industry as of the first half of 2025 was more than double the size of Germany’s and France’s combined, despite concerns that the UK was ceding tech ground to European powers.
“UK Tech is growing at a compound annual growth rate of 12.5% outstripping many of our European counterparts,” said Marco De Novellis, group editor at Tech Nation parent company Founders Forum, unveiling the report at London Tech Week.
The size of rounds has also grown at each stage in comparison with last year, with the largest individual investments going towards the AI and deep tech sectors.
Despite the impressive performance of UK tech firms, the report noted that it is taking more and more time for British startups to raise funding.
According to its research, the average time it takes a UK startup to go from launch to Series C has almost doubled since 2019, reaching 9.6 years.
Three-quarters of UK tech founders surveyed for the report said that access to growth capital is their biggest barrier, which is particularly true outside of London. According to the report, London-based startups raised seven times more funding than any other UK region in 2024.
London’s tech industry alone was valued by the report at $693.7bn (£512bn), 211% greater than second-place East of England.
The biggest policy requests from founders to improve the situation were an increasing number of government-backed investment funds, more pension capital going to the tech industry, the removal of regulatory barriers to procurement and more robust tax incentives for firms developing new technologies.
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