VC funding into British businesses is increasingly concentrating into larger bets on fewer firms, with the AI sector being a top beneficiary.
According to new research from NatWest, UK startups raised £17.5bn across more than 2,000 deals last year, with a clear trend forming favouring larger rounds.
In the bank’s latest Future of UK Innovation report published in partnership with PitchBook, it found that rounds larger than £25m represented more than 70% of VC deals last year, the highest share of the decade.
Unsurprisingly the AI sector saw a significant share of the UK’s total VC investments, pulling in over a third of the total share with more than £6bn raised.
Five new AI unicorns were created and a total of 67 exits took place worth £4bn, suggesting a greater level of maturity and commercial readiness in the sector.
“Our venture landscape has proven remarkably resilient, and we are entering a new era of confidence, opportunity and global ambition,” said Jenny Edwards, head of NatWest venture banking.
“At NatWest Venture Banking, our mission is to be the partner of choice for founders, fund managers and investors who believe in the UK’s potential.”
NatWest Group’s director of Innovation, David Grunwald added: “As funding becomes more selective and efficiency pressures rise, collaborating early and intentionally will help unlock the most value.
“Heading into 2026, the pace of AI and the rise of globally ambitious UK scaleups make this a pivotal moment – and we’re ready to back the founders building the next generation of companies that will drive UK growth.”
