The Deal Q1 2026
UK equity investment has settled into a steady rhythm. £6.0b was raised in Q1 2026, the fifth consecutive quarter near that mark and 34% ahead of 2025’s pace. Beneath that headline stability, however, the market has become more concentrated than it has been in years.
Average deal size has climbed to £4.2m, up from a £3.0m low in late 2024 and approaching the 2022 peak of £4.9m. AI has driven much of this concentration, with NScale, Wayve and ElevenLabs alone accounting for 49% of Q1’s capital.
Equity
Q1 2026 marked the fifth consecutive quarter near £6b, with 1,441 UK companies raising equity. Average deal size has climbed from a £3.0m low in late 2024, with investors concentrating capital in fewer, larger, higher-conviction rounds, as seen throughout 2025.
UK equity investment has held near £6b a quarter since late 2024, with Q1 2026 average deal sizes (£4.2m) approaching 2022 peaks of £4.9m.
Quarterly equity investment into UK companies (2021-Q1 2026)
“The £6 billion quarterly run-rate looks stable, but it’s increasingly powered by fewer, larger, higher-conviction rounds. AI mega-deals alone drove nearly half of Q1’s capital.” – Justin Tsui, Beauhurst Insights
Inflation
While nominal Q1 2026 reached £6.0b (broadly in line with pre-2024 levels), inflation-adjusted figures reveal a more measured recovery. The £4.3b real-terms total is up 47% from the £2.9b late-2024 trough, driven by AI mega-rounds.
Adjusted for inflation, UK equity investment has held around £4.4b a quarter since mid 2025, with Q1 2026 still 53% below the 2022 peak of £9.2b.
Inflation adjusted quarterly equity investment into UK companies (2021-Q1 2026)
Equilibrium
2026 UK equity investment is tracking 34% ahead of 2025, with £5.9b raised in Q1 compared to £4.4b at the same point last year.
Cumulative amount raised of equity deals by UK companies by year
Deals
Full-year deal counts have declined steadily from 8,057 in 2021 to 6,197 in 2025, and Q1 2026 indicates this year is on the same trajectory. Volume has narrowed at every Q1 measurement since 2021, independent of the much more volatile pattern in amount raised.
UK equity Q1 deal volume has narrowed each year since 2021, with 1,366 deals in 2026 (14% below 2025 and 41% below the 2021 peak of 2,319)
Cumulative number of deals by year
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In collaboration with Mercia Ventures, we have delivered data-led insights into the UK equity investment landscape, spanning valuations, regional distribution, and industry trends. This report is a review of 2025 equity deals.
About the authors
Henry Whorwood
Henry 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.
Justin Tsui