UK businesses raised £14.4 billion in equity investment in the first half of 2026, up 26 per cent on the second half of 2025, according to the Barclays Regional Investment Map compiled by Barclays Eagle Labs and Beauhurst.
Companies in the Government’s eight Industrial Strategy sectors accounted for £13.4 billion, or 93.2 per cent of fundraising.
Digital and Technologies was the largest sector by fundraising, taking £11.6 billion, or 80.8 per cent of all UK equity investment in the period. London accounted for £9.03 billion of that figure. Barclays said the number of digital and technology businesses rose in every UK region.
Professional and Business Services was second by fundraising at £4.57 billion, followed by Life Sciences at £2.76 billion. Because companies can operate across more than one sector, Barclays notes sector totals overlap.
Barclays and Beauhurst put the number of UK businesses active across 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, an increase of 1.33 per cent since the fourth quarter of 2025, with numbers rising in every region.
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 on the second half of 2025.
The North West recorded £1.19 billion, up 89.4 per cent, which Barclays attributed in part to an £814 million round for AI company Ineffable Intelligence.
Wales recorded the largest percentage increase of any UK nation or region, with investment rising 530 per cent to £159 million. Barclays linked the rise to an £81 million round for South Wales semiconductor company IQE. The area has also been targeted by the Local Innovation Partnerships Fund, under which regions across England and Wales received up to £20 million each in April.
Northern Ireland investment rose 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.
Defence intentions
Barclays’ Business Prosperity research found that 40 per cent of UK businesses surveyed across multiple sectors intend to increase their involvement in UK defence over the next year. Some 48 per cent expected the Government’s Defence Investment Plan to have a positive impact on their region and 38 per cent expected a positive impact on their own business.
Secretary of State for Business, Innovation, Science and Trade Jonathan Reynolds said: “This is terrific news for UK businesses and shows how bringing business and innovation together through the Industrial Strategy can help drive economic growth and create jobs.
“My ambition does not stop here. I want to go further by bringing good growth to every postcode and provide investors with the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond.”
Abdul Qureshi, head of business banking at Barclays, said: “Businesses across the UK are continuing to attract investment, with strong tech-backed momentum in the Industrial Strategy sectors. From artificial intelligence and life sciences through to advanced manufacturing and defence, we’re seeing strong evidence that investors are backing innovative British businesses with global ambitions.”
He said the North West, Wales, the East Midlands and Northern Ireland had all recorded significant growth in investment activity in the first half, “demonstrating the strength of local innovation ecosystems and specialist expertise across the UK”, and added: “Ensuring businesses can access the finance, support and networks they need to grow will be critical to maintaining 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, of which only 16 per cent of large rounds involved domestic investors. The Government’s sector plans 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 clients in 2026, subject to lending assessment. The data is published in Barclays Eagle Labs’ unlocking growth reports.
