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UK Tech Funding Drops 11% in 2025, but Late-Stage Capital Remains Resilient

UK tech companies raised $15.3 billion in 2025, an 11 percent drop from the previous year, yet the market retained its rank as the world’s second‑largest tech funding hub behind the United States. Deal volume contracted 35 percent, but late‑stage financing proved resilient, climbing 1 percent to $7.6 billion. Seed and early‑stage capital shrank sharply, while enterprise‑application firms surged 25 percent and fintech funding slipped 12 percent. London dominated the ecosystem, attracting 78 percent of total investment.