UK university spinouts raised €1.8 billion across 215 deals in the first half of 2026, marking a 38.2% increase compared to the second half of 2025. However, first-time equity investment dropped by 68.3%, falling from €176 million in H1 2025 to €56 million in H1 2026.
Greater Cambridge businesses have raised €10.8 billion since 2015. The average deal size in the region increased fivefold over the decade, reaching €11 million in 2025. Notable recent funding includes CuspAI, which secured €393.2 million at a €2.2 billion valuation, and Cambridge Aerospace, which raised €259.7 million at a €2.94 billion valuation.
International investors are playing a larger role, participating in 86.1% of university spinout funding rounds in H1 2026. Furthermore, international buyers accounted for 75% of UK spinout acquisitions during the same period. Since 2016, US buyers have acquired 66 UK spinouts, while British buyers acquired 57.
Investment remains geographically concentrated, with nearly 80% of spinout funding since 2016 directed to London, the South East, and the East of England. Oxford spinouts raised €6.4 billion, Cambridge spinouts €4.7 billion, Manchester spinouts €232 million, and Liverpool spinouts €23.3 million over this period.
The defence technology sector is also seeing significant activity. A survey of 250 senior decision-makers indicates that 97% of UK defence companies and startups expect to seek external funding within the next 12 months, with 59% of startups considering equity financing as a primary option.
