1、Image generated by Dealroom using ChatGPTUK INNOVATIONUPDATEQ1 2025April 2025“Were delighted to share our latest quarterly UK innovation update in partnership with Dealroom,highlighting a strong start to the year for the UK innovation economy.Headlining the report is the finding that UK startups col

2、lectively raised$4.2 billion in the first quarter,the strongest start to a year since 2022.This is a positive indicator that appetite is strong for backing UK innovation companies in core UK sectors such as life sciences,AI,and fintech.Underpinning this total was an exceptional quarter for UK health

3、 tech and life sciences,which secured$1.8 billion in funding.This marked the sectors second highest quarterly total on record,driven largely by health tech and life sciences businesses closing three of the UKs six Q1 mega rounds.Deepmind spinout Isomorphic Labs$600 million raise was the largest roun

4、d of the quarter,reflecting the growing influence that AI now plays within the life sciences sector.This signals the UKs status as an AI superpower and demonstrates how the depth and diversity of technical and scientific talent is enabling cross-pollination between sectors,unlocking exciting new pos

5、sibilities.Encouragingly,$1.8 billion of total funding came from breakout stage deals,with late stage close behind at$1.7 billion.With strength across all life stages,we expect to see meaningful growth and acceleration from UK start-ups and scale-ups with Q1 setting the stage for future success.2025

6、 still has plenty of room to run,but Q1 has laid the foundations for the next phase of growth and investment into UK innovation,while recognising the outlook is heavily reliant on the current economic and geo-political macro headwinds.The team at HSBC Innovation Banking look forward to supporting ou