Investment into Spinouts 2026
Insights on investment data from 2025
Together with Penningtons Manches Cooper, we examine the UK’s spinout landscape in 2025.
Equity funding fell to £1.96b across 384 deals, with 36.7% of fundraisings below £500k. At the same time, the average grant size rose by 10.96% to reach £423k, even as the number of grants fell to its lowest since 2016.
The ‘Golden Triangle’ of Oxford, Cambridge and London performed strongly, with Cambridge and South Cambridgeshire local authorities forming the UK’s largest innovation cluster and Cambridge spinouts securing a total of £486m in equity funding.
Life Sciences and Digital and Technologies companies remained prominent, with Digital and Technologies subsectors such as Big Data and geospatial technologies outperforming on investment relative to their three-year averages.
Inside the report
FAQs
Spinouts raised £1.96b across 384 deals in 2025.
36.7% of spinout deals in 2025 were under £500k.
The average grant award size for spinouts in 2025 was £423k, an increase of 10.96% from 2024.
Application software companies secured 100 deals in 2025, followed by pharmaceuticals (88), clinical research (80), and biotechnology (77).
South Cambridgeshire companies accounted for 22 deals, followed by Cambridge city (19), forming the UK’s largest spinout cluster.
About the authors
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Henry WhorwoodManaging DirectorHenry leads our Beauhurst Insights team, and is an expert on equity finance. He's worked on briefs for the likes of Barclays, SyndicateRoom, Innovate UK, Smith & Williamson and British Business Bank. He regularly gives presentations on market trends at events around the UK.
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Callum NewtonPublic Sector LeadsCallum is the Public Sector Lead for Beauhurst Insights, responsible for leading on the team's public sector work. Before joining Beauhurst, Callum was a Senior Researcher at Westminster-based think-tank Onward focusing on ‘Levelling Up’ policy. He was also a Consultant in Portland Communication’s specialist Litigation & Disputes practice.
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Hannah NichollsDesignerHannah produces graphic design and data visualisation for the Beauhurst Insights team, and has accumulated over 11 years of experience within the design industry. In the last 4+ years, she has specialised in data visualisation and report design, focusing on creating bespoke reports for strategy and thought leadership.
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Miraj MistryResearch ManagerMiraj handles project management and data analysis for Beauhurst Insights. His previous role was with an economic consultancy who specialise in providing socio-economic research and analysis to support infrastructure and transport projects. He holds an MSc in economics from the University of Bristol and a BSc from the University of Leeds.
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Freya MortenResearch ManagerFreya manages research projects and data analysis at Beauhurst Insights. She recently joined the team, having previously conducted and led research at Grant Thornton and Mishcon de Reya across multiple service lines, industries and geographies. She holds a BA in Theology from the University of Oxford.
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Michael HurleyData Science ManagerMichael uses advanced statistical and econometric methods to provide clients with more in-depth, impactful, and novel analyses. He also automates processes by developing and implementing new analytics tools. Before joining Beauhurst, Michael was a data analyst at a policy organisation, where he researched innovation policy.
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tomsharpeAssociateTom performs data analysis and visualisation as well as copywriting for the team. Prior to joining Beauhurst Insights, he spent 2 years in the Data team, helping curate our dataset, with a specific focus on IPOs and Exits. Tom holds a BSc (Hons) in Sport and Exercise Science from Loughborough University and enjoys consulting on mental health research.
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