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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