London's share of first-time equity deals falls to 44.6 per cent. The majority of companies raising equity for the first time are now based outside London, according to research from Beauhurst Insights and the law firm Penningtons Manches Cooper, with the capital's share of first-time deals falling to 44.6 per cent in the first half of 2026. London's share of all first-time equity deals had already dropped to 49.1 per cent in 2025, the researchers said. The last time more first-time fundraisings were completed outside the capital than inside it was in 2022, according to Beauhurst. Companies using artificial intelligence captured 58.6 per cent of the value of all first-time deals in the six months to June, the study found. That compares with 32.9 per cent in 2025 and 17 per cent in 2024. Free newsletters The stories that matter to UK business, straight to your inbox. The 2,730 start-ups that sold shares for the first time in 2025 raised a total of £4.4bn, an increase of 11.7 per cent, according to the report. However, 30 per cent more companies secured external capital for the first time, and the researchers said investors had committed less money per company and at lower valuations. Pre-investment valuations fell by 20.3 per cent to £1.5m last year, and the average has since slipped to £1.45m. The average deal size fell from £2m to £1.7m. The median deal stood at £290,000, a gap the researchers attributed to the effect of several very large first-time fundraisings. Henry Whorwood, managing director at Beauhurst Insights, said the increased volume of first-time equity raises reversed a long-term decline. He attributed that decline to venture capital firms increasingly needing to support their existing portfolio companies with more capital. Mr Whorwood said the rise of AI had driven the reversal, with a wave of companies seeking to exploit the technology. London leads on AI rounds. Although the capital's overall share has fallen, London completed more AI first rounds than the rest of the UK combined, at 392 against 268, the research found. London's 60 per cent share of AI fundraising rounds was 11 percentage points ahead of its share of the market as a whole. The researchers said this reflected the concentration of investors and support services for technology companies in the capital. Separate Barclays and Beauhurst figures published in July showed that UK equity investment rose to £14.4bn in the first half of 2026, with London accounting for the bulk of the money raised. Outside London, first-time fundraising in the West Midlands nearly doubled in 2025, according to the report. Northern Ireland recorded a rise of 73 per cent and Scotland 60 per cent. London-based deal volumes rose by 27 per cent. Largest first-time rounds. The report pointed to several very large first-time fundraisings. Isomorphic Labs, the London-based, Google-backed start-up that uses AI for drug discovery, raised £464m in March 2025. Edinburgh-based Fidra Energy, which has developed a battery energy storage system, secured £445m from its owner, the US institutional investor EIG, alongside the UK's National Wealth Fund. In the first half of this year, the £814m of first-time equity raised by Ineffable Intelligence represented 39 per cent of the value of all first-time deals, according to the research. The London-headquartered AI company was founded in late 2025 by David Silver, a computer science professor at University College London and a former senior AI specialist at Google's DeepMind labs in London. The British Business Bank was among the backers of the Ineffable Intelligence round. Separate Tracxn data published in July found that investors were writing fewer, larger cheques in the first half across UK tech.

Granton Waterfront project backed with £38.4 million loan. 11 September 2026 THE National Wealth Fund has provided a £38.4 million loan to the City of Edinburgh Council to support enabling works on the first phase of the Granton Waterfront project. The Granton Waterfront development is one of Scotland's largest brownfield regeneration projects - transforming a disused former industrial site into a new coastal community in the north of Edinburgh. The full development will deliver around 3,500 energy efficient homes. The backing will help the council deliver the enabling infrastructure that is needed to unlock further private sector investment as part of a first phase of regeneration. National Wealth Fund capital will support land remediation, the provision of road and utility infrastructure, and wider public realm works. The public finance institution explained that, by providing cost-effective financing for the enabling works, its intervention will ensure serviced plots of land are created to allow homes for sale to be taken forward by the council's development partner. This will represent a further £160 million of private sector investment in the regeneration of Granton Waterfront. The fund's involvement improves the financial viability of the project by allowing the council to benefit from a more bespoke low-cost lending facility. Enabling work is underway on phase one which, once completed, will deliver 847 homes, including 214 new social houses, a new primary school and space for 14 ground floor retail units. This first phase is part of a wider £1.3 billion programme to regenerate Granton Waterfront which will deliver 3,500 new homes, space for leisure facilities and Scotland's largest coastal park. Oliver Holbourn, CEO of the National Wealth Fund, said, "It's great to be working with leaders at the City of Edinburgh Council to help deliver their ambitious local growth plans, including through regeneration projects like Granton Waterfront, delivering meaningful change to people, places and businesses in the region." City of Edinburgh Council leader, Jane Meagher, added, "Scottish Enterprise is grateful to the National Wealth Fund for its support through a cost-effective loan, which is helping to enable the works for the first phase of this ambitious project. "Phase 1 forms part of a wider £1.3 billion programme to regenerate Granton, transforming what was once a neglected part of the city into a thriving and desirable place to live, work and visit. "As the largest public sector led project of its kind in Scotland, it will continue to set the standard for sustainable economic growth in Edinburgh for years to come, whilst responding to the ongoing housing emergency."

Cardiff region joins National Wealth Fund partnership. 7th September Cardiff Capital Region partners with the National Wealth Fund to boost Welsh infrastructure, attract investment, create jobs and accelerate economic growth (Image: RICHARDPWALTON.CO.UK) Cardiff Capital Region is joining forces with the UK's National Wealth Fund through a formal agreement aimed at accelerating economic growth and development opportunities across the region. The strategic partnership will provide CCR with direct access to the National Wealth Fund's investment expertise and capital, supporting the expansion of project pipelines, attracting public and private finance, and delivering critical infrastructure to drive economic growth and job creation. Mary Ann Brocklesby, chairman of Cardiff Capital Region, said: "This strategic partnership with the National Wealth Fund is a show of confidence in the region to accelerate the development of genuinely game-changing projects that will drive sustainable economic growth across our region and to the benefit of the nation and local communities. "By combining our deep understanding of local opportunities with the Fund's investment expertise and capital, we can strengthen our pipeline of investable projects, unlock private sector investment and deliver the infrastructure needed to support thriving communities, better connectivity and high-quality jobs. "We look forward to working closely with the National Wealth Fund, Welsh Government and our founding local authority partners to turn ambitious plans into deliverable projects that create long-term prosperity for our residents." Welsh Secretary Stephen Kinnock also welcomed the collaboration. He said: "The Prime Minister and Chancellor are committed to delivering good growth and jobs in every Welsh postcode. "This will come from empowering regional leaders and supporting modern industries to unlock opportunities for our communities. "The new partnership between the UK Government's National Wealth Fund and Cardiff Capital Region will help boost the Welsh economy by driving investment into infrastructure, regeneration, and the jobs of the future." The partnership forms part of the National Wealth Fund's Regional Project Accelerator programme, which focuses on long-term collaboration with local leaders to identify and deliver high-impact development schemes. Similar partnerships have already supported projects such as Clyde Metro in Glasgow City Region, a new zero-emission bus fleet in Greater Manchester and Mass Transit in West Yorkshire. Kellie Beirne, chief executive of Cardiff Capital Region, said: "I welcome forming a strategic partnership with the National Wealth Fund. "By connecting national investment capacity with the ambition and opportunities across all ten areas in our region - and working in the Welsh way, collaboratively with UK, Welsh and local government - we can unlock private capital, accelerate delivery and make a bigger collective impact for our economy, communities and places. "It is another demonstration of what the Cardiff Capital Region can achieve as a force for Wales." The collaboration builds on CCR's recent regeneration successes, including its Strategic Premises Fund and Northern Valleys Initiative, which have already directed more than £115 million into business and industrial development across the region. More Stories