Asset Allocation
UK Venture Fundraising Reaches Q3 Record
Venture capital firms in the country raised $23.3 billion this year through September, including $6.9 billion in the third quarter, according to HSBC and Dealroom.
Reported by Matt Toledo
U.K.-based venture capital firms raised $6.3 billion in the third quarter of 2026, a record single-quarter total, according to data from Dealroom and HSBC. Through September, the U.K. attracted $23.3 billion in VC fundraising year-to-date—approximately 35% of all venture capital funding across Europe.
London-based Index Ventures LLP accounted for half of VC capital raised during the quarter, attracting $3.5 billion, followed by a 1.1-billion-euro ($1.23 billion) fundraise from Highland Europe LLP. Overall, U.K. venture capital firms raised $6.9 billion across 31 new funds in July, August and September.
“These figures reflect the fact that the U.K. is home to some of the world’s most exciting early-stage businesses in strategically important sectors such as semiconductors, AI and defence technology,” said Daniel Turgel, a partner in and the co-head of law firm White & Case’s global technology industry group, in a statement. “With companies and investors racing to back the best and latest technologies to strengthen their capabilities, investment is pouring in and the most innovative firms are attracting significant funding.”
The record capital raise comes amidst government efforts to boost private capital investment in the country’s unlisted equities, infrastructure, property and private credit, subject to trustees’ fiduciary duties. In May 2025, the U.K. government launched the Mansion House Accord—a voluntary initiative under which defined contribution pension funds pledged to allocate at least 10% of assets to private market investments by 2030, including markets in the U.K.
“This also reinforces that the UK, with its deep pools of growth capital, is a leading European destination for firms looking to raise capital, invest and scale,” Turgel said in the statement. “Indeed, our recent research of U.K. defense technology start-ups showed that 92% believe the U.K. is the leading European destination for defense technology investment, while 99% are looking to raise significant external funding over the next 12 months to accelerate growth,” Turgel said. “The key now is to ensure these businesses can continue to secure the funding they need to scale and compete globally.”