Startups and scaleups based in the UK secured more than $9bn in venture capital funding in Q3, making it the second-highest quarterly funding total on record.
It is also the most funding secured in a third quarter since 2021 and brings funding for the year to $17.3bn, equalling the total money raised in all of 2024.
The analysis, provided by HSBC Innovation Banking and data provider Dealroom, forecasts that the UK is on track to have its best year of funding since 2022 and is projected to close at around $23bn.
There was an increase in both the value and the number of deals including 12 transactions over $100m and two multibillion dollar deals.
Unsurprisingly fintech emerged as the most well-funded sector, having secured $5.3bn from venture capital investors so far this year. This includes the $2bn raised by Revolut.
The UK also continues to outpace its European rivals when it comes to venture capital with the $17.3bn raised so far exceeding the combined totals of Germany, Switzerland and France who account for the three next highest totals.
"UK venture capital has rebounded with strength across all stages this year," said Simon Bumfrey, head of banking, HSBC Innovation Banking.
"The return of billion-dollar megarounds, alongside record early-stage activity, signals renewed investor confidence in the UK’s innovation economy."