Barclays: UK business equity investment rises by more than a quarter in H1 as innovation-led sectors lead fundraising
The Barclays Regional Investment Map, which provides insights into UK company funding and growth, reveals that UK businesses attracted £14.4bn in equity investment during the first half of 2026, up 26% compared with H2 2025.
Analysis from Barclays Eagle Labs and Beauhurst shows there are now over 5.5 million active businesses operating across the UK, an increase of 1.33% since Q4 2025.
The data also highlights the scale of the UK’s innovation economy, with activity spanning more than 1.3 million businesses across the government’s eight Industrial Strategy sectors.
The UK’s Industrial Strategy sectors, which include Advanced Manufacturing, Clean Energy, Creative Industries, Digital & Technologies, Financial Services, Life Sciences, Professional and Business Services, and Defence attracted a combined £13.4bn of total fundraising during H1 2026.
Digital & Technologies remained the UK’s leading investment destination, securing £11.6bn in funding and accounting for 80.8% of the total UK investment. London’s technology ecosystem continued to dominate, attracting £9.03bn of the sector’s total investment. However, the sector continues to grow outside of the capital, with the number of digital and technology businesses rising in every region of the UK.
Professional and Business Services attracted £4.57bn of investment, making it the second-largest Industrial Strategy sector by fundraising, while Life Sciences secured £2.76bn.
Beyond the largest sectors by fundraising, Barclays’ latest Business Prosperity research also points to growing business appetite in defence. The research showed 40% of UK businesses surveyed across multiple sectors intend to increase their involvement in UK defence over the next year. A further half (48%) also expect the government’s Defence Investment Plan to have a positive impact on their region and 38% expect a positive impact on their own business.
| Top three IS8 sectors – equity investment by region, H1 2026 | |||
| Region | Digital & Technologies | Professional & Business Services | Life Sciences |
| London | £9.03bn | £3.73bn | £2.06bn |
| South East | £635m | £147m | £53.9m |
| North West | £1.01bn | £122m | £65.6m |
| West Midlands | £47.4m | £14.4m | £1.45m |
| East of England | £357m | £260m | £375m |
| Yorkshire and The Humber | £82.8m | £48.0m | £14.1m |
| East Midlands | £25.0m | £19.7m | £16.2m |
| South West | £115m | £58.2m | £38.0m |
| Scotland | £128m | £86.2m | £93.1m |
| Wales | £126m | £15.5m | £27.2m |
| North East | £11.5m | £8.35m | £8.00m |
| Northern Ireland | £68.7m | £61.2m | £7.48m |
| UK | £11.6bn | £4.57bn | £2.76bn |
| *Because many businesses operate across multiple sectors, companies may appear in more than one IS8 category. | |||
Regional growth reflects strength of industrial clusters
While London remained the UK’s largest investment hub, attracting £10.1bn and 70% of total UK equity investment during the first half of 2026, significant growth stories emerged across the UK’s nations and regions.
The North West attracted £1.19bn in investment, up almost 90% compared with H2 2025. Performance was supported by an £814m fundraising round for AI company Ineffable Intelligence, highlighting the region’s growing strength as a centre for technology and innovation.
Wales recorded one of the strongest performances of any UK nation or region, with investment increasing more than fivefold to £159m. This was supported by an £81m fundraising round for semiconductor specialist IQE, reinforcing South Wales’ position as an emerging centre for semiconductor technology and advanced manufacturing.
Northern Ireland also saw investment increase 63.4% to £72m, helped by a £53.5m fundraising round for software company Cloudsmith.
| Top equity investment growth by region, H1 2026 | ||
| Region | % change | Total investment |
| Wales | 530% | £159m |
| North West | 89.4% | £1.19bn |
| East Midlands | 88.2% | £57.9m |
| Northern Ireland | 63.4% | £72.2m |
| London | 48.5% | £10.1bn |
| East of England | 19.6% | £728m |
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.”
“What’s particularly encouraging is that investment opportunities are emerging right across the country. The North West, Wales, East Midlands and Northern Ireland all recorded significant growth in investment activity during the first half of the year, demonstrating the strength of local innovation ecosystems and specialist expertise across the UK.
“Ensuring businesses can access the finance, support and networks they need to grow will be critical to maintaining this momentum. By continuing to invest in innovation, technology and skills, firms across the UK can put themselves in a strong position to seize future growth opportunities.”
Lending support available via Barclays Business Prosperity Fund
To support businesses to invest for growth, the Barclays Business Prosperity Fund is available for new and existing Business Banking customers and UK Corporate Banking clients across the UK to apply for lending and refinancing on existing projects. Businesses can find out more at home.barclays/businessprosperity.
£22bn is the total amount of lending Barclays has available to lend and support business growth among Business Banking and UK Corporate Banking clients in 2026. Subject to normal lending assessment, status and application. Terms and conditions apply.