Sonde Market Data / UK sub-£50m private market

£2.51bn across 2,421 companies.

The strongest second quarter since 2022 for UK private companies raising under £50m, and the first to break clear of the £2.15bn ceiling that held through 2023, 2024 and 2025.

Published 11 August 2026 Built from every SH01 filed with Companies House Methodology ↓
Capital raised
£2,507m
Q2 2025 · £2,151m
strongest Q2 since 2022
Companies raising
2,421
Q2 2025 · 2,224
up 8.9%
Average raise
£1.04m
Q2 2025 · £0.97m
rising
Mega-deals · £50m+
11 / £1.65bn
Q2 2025 · 11 / £1.94bn
same count, less capital
H1 running total
£4.49bn
H1 2025 · £3.86bn
~17% ahead

Part of the year-on-year gap reflects improved capture of recently filed and recovered filings, not market movement. Read the direction, not the decimal places. See methodology.

Headline / 01 2026 is tracking above the plateau Three years landed inside £8.5–8.8bn. H1 2026 stands at £4.49bn, 16.5% ahead of H1 2025. Full-year forecast £9.0–10.3bn.
Headline / 02 The field stopped narrowing 2,421 companies raised in Q2, up from 2,224 a year ago. That is the first Q2 increase since 2024, after a thinner 2025.
Headline / 03 AI's real weight is 2.6× its label Pure-play AI raised £155m. Companies applying AI across other sectors raised £397m over three times as many companies. Embedded, not badged.

The quarter / 01

The first quarter to sit
clear of the plateau.

Sub-£50m capital raised per quarter £m · Q1 2019 – Q2 2026
Quarter Second quarters Q1 2026 Q2 2026

The year / 02

Three years inside £8.5–8.8bn.
2026 is tracking above them.

Annual sub-£50m capital £bn · 2026 = forecast range
2026 forecast
£9.0–10.3bn
£8bn 2025 · £8.8bn £11bn

H1's share of the year has slid from 54.5% (2022) to 43.8% (2025), so the forecast is a range: the four-year average share lands 2026 near £9.0bn; last year's H2-heavy pattern, near £10.3bn. Both ends sit above 2025's £8.8bn.

Funding events
9,4152024 · the peak
8,7692025 · the thinning
4,826H1 2026 · to date

The average sub-£50m raise has climbed 20% in two years: £860k in Q2 2024 to £1.04m now.

Stages / 03

Where in the stack
the money went.

Seed7.9% of capital
£199m
749 companies
Series A21.8% of capital
£545m
492 companies
Series B & later69.1% of capital
£1.73bn
408 companies
69% <17%
69% of the capital went to under 17% of the companies.

That is consolidation, not decline: the same money, concentrated into fewer hands. HMRC's tax-relief data corroborates it independently, with EIS investment flat at £1.58bn in 2024–25 while 4% of companies took 27% of the capital. Two datasets, no shared methodology, pointing the same way. A further £30m went to 1,369 pre-seed and bootstrapped companies.

Sectors / 04

Fintech pulls ahead. AI is
everywhere it isn't named.

SectorCapital · Q2 vs Q1 Q2 2026vs Q1
Fintech175 companies · Q1: 179
£351m
Q1 · £213m
▲ capital +65%
Life sciences226 companies · Q1: 275
£334m
Q1 · £340m
≈ flat
SaaS200 companies · Q1: 230
£196m
Q1 · £305m
▼ capital −36%
AI · pure-play72 companies · Q1: 86
£155m
Q1 · £179m
▼ capital −13%
Deeptech55 companies · Q1: 58
£98m
Q1 · £95m
≈ flat
Energy52 companies · Q1: 55
£77m
Q1 · £30m
▲ capital +157%
Life sciences = biotech (£205m) + healthtech (£91m) + medtech (£38m). Every company sits in one sector only, the one that best describes what it does, so no round is counted twice in these totals. Q1 figures are recomputed on this quarter's basis, so the comparison measures the market rather than a change of method.
2.6×AI theme vs label

Companies applying AI raised 2.6 times what pure-play AI raised, across more than three times the companies.

Applying AI: inside fintech, SaaS, drug discovery, deeptech and beyond£397m · 245 cos
Pure-play AI: AI as the headline identity£155m · 72 cos

At £397m the AI theme is larger than any single named sector in the segment, fintech included. An investor who wants AI exposure in this market gets more of it, more diversified, by backing the sectors deploying AI than by hunting for companies with AI in the name.

The top end / 05

Eleven mega-deals.
Two real rounds.

£374m genuine UK venture £1.27bn not venture, of £1.65bn total
£190m
PhysicsX$300m Series C led by Temasek · $2.4bn valuation
AI Genuine VC
£184m
Fractile$220m Series B
AI Genuine VC
£166m
DepopA change of corporate ownership arriving in the statutory record as a share allotment
Not venture
+8
The rest of the mega layerForeign-parent subsidiary capitalisations, a defence joint venture, an aerospace build-out and intra-group movements
Not venture

Eleven companies raised £50m or more in Q2, totalling £1.65bn, but only about £374m of it is confirmed UK venture capital. Both confirmed rounds are AI companies: the pure-play AI story is real, it is simply happening at the top of the market.

The rest is not venture, or not verifiable as venture. The largest single entry is a US parent capitalising a new UK subsidiary, and behind it sit a defence joint venture, an aerospace build-out and intra-group movements. This is why the headline series is sub-£50m: it is the segment UK angels, EIS and SEIS funds actually deploy into.

Regions / 06

Where the capital lands.

57%
of Q2 sub-£50m capital went to companies registered in London
RegionCapital£mCos
London 1,427 1,167
South East 242 301
East of England 238 183
North West 117 150
Scotland 110 104
Wales 77 52
South West 72 161
West Midlands 68 98
Northern Ireland 58 36
East Midlands 42 62
North East 33 33
Yorkshire & the Humber 22 74
By registered office, mapped from postcode area to region, because the Companies House region field is populated for only about a quarter of these companies. Every company in the quarter mapped to a region. A registered office is not always where a company operates; it is frequently an adviser's address, which biases the split toward city centres and toward London in particular.

Quarterly briefing

Get Q3 before it publishes.

We publish roughly three weeks after quarter-end, ahead of most coverage. Wealth managers, IFAs and institutional allocators can get the data briefing first.

One email per quarter. No spam, unsubscribe any time.

Methodology / 07

How we count.

6.5M
SH01 & CS01 filings parsed, back to 2016
91k
UK companies with a share allotment in this series
30
quarters in the series behind this page
64k
company-quarter funding events, each traceable to filings

The dataset

Sonde parses every SH01, the statutory return of allotment of shares, lodged with Companies House by UK private companies. Each filing is the legal record of new shares issued. We structure the filings, strip out those that are not genuine private fundraising, and aggregate by company within each calendar quarter, so a company filing multiple SH01s in a quarter counts once.

Where a filing has been formally corrected via a later RP04, we use the corrected values and exclude the superseded original.

Definitions

Mega-deals are companies raising £50m or more within a quarter, reported separately because a handful of outsized entries would otherwise swing the totals. Sectors are assigned by our classification of each company's activity; early-stage companies without a confident classification are reported as unclassified rather than guessed. Regions follow the company's registered office.

The headline series is sub-£50m: the segment UK angels, EIS and SEIS funds deploy into.

What we exclude

PLCs: public-market placings, not private rounds
Par or nominal-price allotments: these signal intra-group capitalisations
Obvious filer errors: per-share price above £10,000 or totals above £500m, corrected or excluded
Non-GBP allotments: the series is a sterling one
Majority-owned subsidiaries: a single corporate shareholder above 50% indicates intra-group movement
Holding vehicles: TOPCO / MIDCO / BIDCO / HOLDCO entities are financing-structure layers, not operating companies
Revisions

Early, and occasionally revised

We publish roughly three weeks after quarter-end, ahead of most coverage. The price of being early is occasional revision: late-arriving and recovered filings lift recent quarters, and filter improvements can correct the historical series.

This page carries a revision. It was drafted from a 27 July pull and is published from an 11 August one, after a batch of previously unreadable filings was recovered. That lifted Q2 2026 from £2.23bn to £2.51bn and, because the recovery reached back through the series, lifted Q2 2025 from £2.06bn to £2.15bn as well. The comparison is like-for-like; both numbers moved.

Every figure on this page comes from a single pull dated 11 August 2026. We flag revisions when they happen, and we do not mix pulls.

Every number on this page
traces back to a filing.