HSBC Innovation Banking has praised the UK’s innovation ecosystem. <\/p>\n
HSBC Innovation Banking, a subsidiary of Europe\u2019s biggest lender, hailed the UK\u2019s enterprise value in its latest innovation report.<\/p>\n
UK innovation firms raised \u00a33.2bn of venture capital in the first three months of the year \u2013 an eight per cent increase from the first quarter of 2024.<\/p>\n
The quarter attracted higher amounts of funding, with over six recorded megarounds and the second-highest average deal size since 2020.<\/p>\n
Health ranked as the most funded sector, with its second strongest quarter on record. It more than doubled enterprise software, which came in second at \u00a3549m.<\/p>\n
Megarounds from London-based Isomorphic Labs and Verdiva Bio at \u00a3455m and \u00a3312m bolstered the sector\u2019s total.<\/p>\n
This strengthened the UK\u2019s lead over its European peers and cemented its position as the centre for such investment across the region. In the first quarter, the UK raised more than France, Germany and Spain combined.<\/p>\n
Simon Bumfrey, chief executive of HSBC Innovation Banking,<\/a> said: \u201cThe UK remains Europe\u2019s innovation powerhouse \u2013 driving revenue, producing more unicorns, and capturing a growing share of VC investment.\u201d<\/p>\n \u201cWith rising early stage investment, fast-growing sectors, and standout IPO candidates, we\u2019re excited to see what the rest of the year holds for the UK innovation economy and remain focused on supporting firms to accelerate growth across the ecosystem.\u201d<\/p>\n