"Twelve months after Labour's 50-point plan of action to stimulate the UK's artificial intelligence (AI)-enabled economy, a new report shows billions of pounds are being invested in UK AI startups. The AI Index report from the Startup Coalition, sponsored by Coreweave, analysed funding of the UK's top 1,000 firms according to the amount of private capital they have raised, in collaboration with data provider Beauhurst."
"However, compared with the £20.2bn in private financing, the UK government has only provided £456.5m in grants, equivalent to 2.2% of capital. According to the Startup Coalition, while this shows private sector confidence, it also reveals limited public commitment, compared with competitors like France, where the state is actively co-investing at scale. Another challenge is the relatively high equity stake universities have in UK AI startups that have been spun out of university research. The Startup Coalition reported that in 2024, the average equity stake for startups stood at 16.1%."
UK AI startups have raised more than £20bn in private capital and hold combined valuations exceeding £45bn. An AI Index of the top 1,000 firms used Beauhurst data and Coreweave sponsorship to track funding. Business services include 388 startups that have attracted £8.3bn, highlighting a focus on B2B commercial tools. Financial services hosts 123 AI firms and health hosts 129, demonstrating sector-specific AI expertise. Government grants amounted to £456.5m, just 2.2% of private financing, compared with larger state co-investment in countries like France. Average university equity stakes in 2024 stood at 16.1%, and a tiered cap on stakes is proposed to improve incentives.
Read at ComputerWeekly.com
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