UK Tech Funding Falls 11% in 2025, but Remains Second Globally

The UK tech sector raised $15.3 billion in 2025, marking an 11% year-on-year decline and a 35% drop in deal volume. While late-stage funding remained resilient, seed and early-stage investment fell sharply, reflecting growing investor risk aversion. Despite economic pressures and regulatory headwinds, the UK remains the world’s second-most funded tech ecosystem, with London dominating capital flows and enterprise software leading sector gains.