UK businesses raised £14.4 billion in equity investment in the first quarter of 2026, up 26 percent on the second quarter of 2025, according to the Barclays Regional Investment Map compiled by Barclays Eagle Labs and Beauhurst.
Companies in the eight sectors of the government’s Industrial Strategy accounted for £13.4 billion, or 93.2 per cent of fundraising.
Digital and Technologies was the largest sector by fundraising, accounting for £11.6 billion, or 80.8 per cent of all UK equity investment over the period. London accounted for £9.03 billion of that figure. Barclays said the number of digital and technology businesses has increased in all regions of the UK.
Professional and Business Services was second in fundraising at £4.57 billion, followed by Life Sciences at £2.76 billion. Because companies can operate in more than one sector, Barclays notes that the total sector is complementary.
Barclays and Beauhurst put the number of UK businesses active in the eight sectors named in the Government’s Industrial Strategy at more than 1.3 million. The analysis records around 5.51 million active companies in the UK in the first half of the year, which is an increase of 1.33 per cent from the fourth quarter of 2025, with figures increasing in all regions.
London share and regional growth rates
London attracted £10.1 billion, or 70 per cent of total UK equity investment, an increase of 48.5 per cent in the second half of 2025.
North West recorded £1.19 billion, up 89.4 per cent, Barclays said in part from an £814 million investment in AI firm Ineffable Intelligence.
Wales recorded the largest percentage increase of any UK nation or region, with investment up 530 per cent to £159 million. Barclays has linked the rise to an £81 million round of South Wales semiconductor company IQE. This area is also managed by the Local Innovation Partnerships Fund, with regions across England and Wales receiving up to £20 million each in April.
Investment in Northern Ireland increased by 63.4 per cent to £72.2 million, helped by a £53.5 million round for software company Cloudsmith. The East Midlands recorded £57.9 million, up 88.2 per cent, and the East of England £728 million, up 19.6 per cent.
Security purposes
Barclays’s Business Prosperity survey found that 40 per cent of UK businesses surveyed across a range of sectors intend to increase their involvement in security in the UK over the next year. About 48 percent expected the Government’s Defense Investment Program to have a positive impact on their region and 38 percent expected a positive impact on their businesses.
Business, Innovation, Science and Trade Secretary Jonathan Reynolds said: “This is heartbreaking news for UK business and shows how bringing together businesses and innovation through the Industrial Strategy can help grow the economy and create jobs.
“My ambition doesn’t end here. I want to continue to deliver positive growth in all postcodes and give investors the stability and confidence they need to plan not just for the next year, but for 10 years and beyond.”
Abdul Qureshi, head of corporate banking at Barclays, said: “Businesses across the UK continue to attract investment, with strong momentum underpinned by technology in the Industrial Strategy sectors. From artificial intelligence and life sciences to advanced manufacturing and defence, we are seeing strong evidence that investors are backing new British businesses with global ambitions.”
He said the North West, Wales, East Midlands and Northern Ireland all recorded strong growth in investment activity in the first half, “demonstrating the strength of local innovation and technology across the UK”, and added: “Ensuring businesses can access the finance, support and networks they need to grow will be critical to sustaining this momentum.”
The figures follow separate data from Dealroom and HSBC Innovation Banking showing that UK start-ups raised a record $17bn in the first half of 2026, with only 16 per cent of large rounds involving domestic investors. The Government’s plans for the sector have committed the British Business Bank to £4 billion of Industrial Strategy Growth Capital.
Barclays said it has £22 billion available to lend to Business Banking and UK Corporate Banking customers by 2026, subject to a loan review. The data was published in the opening growth reports of Barclays Eagle Labs.
