UK venture capital firms raised a record $6.9bn (£5.17bn) in the third quarter of 2026, taking fundraising for the first nine months of the year to $23.3bn (£17.46bn), according to HSBC Innovation Banking and Dealroom.
The quarterly total was four times the average raised in each quarter over the previous two years, with 31 new funds launched during the period. Index Ventures accounted for just over half of the total, raising $3.5bn (£2.62bn) across seed, venture and growth strategies.
UK startups and scaleups raised a further $6.1bn (£4.57bn) in Q3, making it the second-strongest third quarter in five years. Additionally, late-stage deals accounted for much of the investment, with 11 rounds of $100m (£74.94m) or more contributing $3.5bn (£2.62bn) or 58% of all capital raised during the quarter. CityFibre’s $1.2bn (£900m) growth round was the largest of these deals. Breakout-stage companies raised $1.9bn (£1.42bn) across 55 deals, increasing their share of quarterly investment from 24% a year earlier to 30%.
The fundraising figures come as the UK maintains its position as Europe’s leading venture capital market. UK companies accounted for 25% of European VC investment and 30% of all rounds during Q3, while the UK captured 35% of European venture capital investment during the first nine months of the year. Highland Europe, QuantumLight and Crane Venture Partners were among the other firms to announce new funds during the quarter.
Telecoms and fintech attracted the largest amounts of capital during Q3, supported by major rounds from CityFibre and FNZ. Meanwhile, Health led the market by deal count, with 62 rounds attracting $645m (£483.36m). The report said the figures reflected growing investment across life sciences, software, data and AI.
Semiconductor companies have raised $1.59bn (£1.19bn) in the first nine months of 2026, already making it a record year for the sector.
Orla Browne, head of insights at Dealroom, said: "UK tech is flying in 2026, on track for its second highest year on record."
Emily Turner, CEO of HSBC Innovation Banking UK, added: “At HSBC Innovation Banking, our focus is on supporting founders and investors as they build and scale."
