The April 2025 London Venture Capital Funding Report

London Startup Funding Overview – April 2025

London’s venture capital ecosystem recorded £344.7M raised across 79 deals in April 2025. This represents a 7.2% increase in funding compared to March 2025, while the deal count more than doubled with a 119% increase, though with smaller average deal sizes. Year-over-year, funding grew by 18.0% compared to April 2024, reflecting continued but measured growth in the London startup landscape.

LONDON STARTUP FUNDING OVERVIEW – APRIL 2025

Key Metrics

• Total Funding: £344.7M
• Number of Deals: 79
• Average Deal Size: £4.4M
• Month-over-Month Change: +7.2% (funding), +119% (deals)
• Year-over-Year Change: +18.0% (funding), +14.9% (deals)

Funding by Stage

• Early-Stage (Pre-Seed/Seed): £78.3M across 48 deals
• Series A: £166.2M across 8 deals
• Series B: £61.8M across 2 deals
• Late-Stage & Other: £38.4M across 21 deals

Notable Rounds

• Neurolabs: £43.2M Series B for AI-powered computer vision platform
• Greenspark: £37.6M Series A for carbon removal marketplace
• HealthSync: £31.5M Series A for AI diagnostic solutions
• Finmo: £22.8M Series A for borderless financial infrastructure
• Doshi: £19.4M Series A for sustainable packaging solutions

LONDON FUNDING BY STAGE

Early-Stage Metrics (Pre-Seed/Seed)

• Total Funding: £78.3M
• Number of Deals: 48
• Average Deal Size: £1.6M
• Median Deal Size: £1.3M
• YoY Change: +16.4% (Pre-Seed +18.2%, Seed +15.8%)

The early-stage ecosystem showed strong activity with 60.8% of all deals occurring at Pre-Seed and Seed stages, highlighting London’s continued ability to nurture new ventures. The average deal size remained consistent with recent quarters, indicating stable investor confidence in nascent companies.

Series A Metrics

• Total Funding: £166.2M
• Number of Deals: 8
• Average Deal Size: £20.8M
• Median Deal Size: £18.0M
• YoY Change: +14.3%

Series A activity remained robust, with several substantial rounds in AI, CleanTech, and Health Tech. The consistent Series A pipeline demonstrates London’s effectiveness at helping startups transition from seed to growth phase, with average round sizes increasing compared to the previous year.

Series B Metrics

• Total Funding: £61.8M
• Number of Deals: 2
• Average Deal Size: £30.9M
• Median Deal Size: £30.9M
• YoY Change: 0.0% (same number of deals as April 2024)

Series B activity held steady compared to the previous year, though the average deal size increased, reflecting the maturing of several high-potential companies in the ecosystem.

Late-Stage & Other Metrics

• Total Funding: £38.4M
• Number of Deals: 21
• Average Deal Size: £1.8M
• Median Deal Size: £1.2M
• MoM Change: Variable (includes follow-on rounds, venture debt, and strategic investments)

This category includes a Series C round by NexSphere (£17.9M) along with various follow-on investments, bridge rounds, and strategic partnerships, contributing to the broader ecosystem’s funding landscape.

TOP SECTORS BY FUNDING

AI/Machine Learning

• Percentage of Total Funding: 24.0%
• Year-over-Year Growth: +28.0%
• Deal Count: 16
• Notable Companies: Neurolabs (£43.2M), AlgoAssist (£12.9M), Netalgo (£3.8M)

AI remained the dominant sector, capturing nearly a quarter of all funding with the strongest growth rate across all industries. Computer vision, natural language processing, and enterprise AI solutions drove significant investment.

FinTech

• Percentage of Total Funding: 18.0%
• Year-over-Year Growth: +15.0%
• Deal Count: 12
• Notable Companies: Finmo (£22.8M), AlphaTech (£18.6M), TrendSwap (£3.6M)

London’s position as a global FinTech hub continued to strengthen, with particular interest in payment infrastructure, embedded finance, and institutional trading platforms.

CleanTech/Sustainability

• Percentage of Total Funding: 10.0%
• Year-over-Year Growth: +25.0%
• Deal Count: 9
• Notable Companies: Greenspark (£37.6M), Doshi (£19.4M), Circlelabs (£3.1M)

Sustainability-focused startups showed impressive momentum, receiving the second-highest growth rate after AI, reflecting increased investor recognition of climate tech opportunities.

Health Tech

• Percentage of Total Funding: 12.0%
• Year-over-Year Growth: +20.0%
• Deal Count: 8
• Notable Companies: HealthSync (£31.5M), VitaLens (£3.4M), BioDetect (£875K)

Digital health innovations continued to attract substantial investment, with diagnostic platforms, remote monitoring, and healthcare AI solutions leading the way.

MONTHLY COMPARISON (APRIL 2025 VS MARCH 2025)

Comparing April to the previous month:

• Total Funding: £344.7M vs £321.6M (+7.2%)
• Number of Deals: 79 vs 36 (+119%)
• Average Deal Size: £4.4M vs £8.9M (-50.6%)

The substantial increase in deal count coupled with only a modest funding increase signals a shift toward higher early-stage activity in April, rather than necessarily indicating stronger overall ecosystem performance. The sharp decrease in average deal size from March to April reflects this shift toward smaller rounds.

YEAR-OVER-YEAR COMPARISON (APRIL 2025 VS APRIL 2024)

Looking at the year-over-year metrics:

• Total Funding: £344.7M vs £292.1M (+18.0%)
• Number of Deals: 79 vs 69 (+14.5%)
• Average Deal Size: £4.4M vs £4.2M (+4.8%)

While this represents positive growth across metrics, a more complete assessment would require context about broader venture capital market conditions and performance of other major startup hubs during the same period.

FUNDING OUTLOOK

April’s increased deal activity, particularly at the early stage, shows continued investor interest in London startups. The data suggests several noteworthy trends:

1. Sector diversification is evident with AI/ML (24% of funding), FinTech (18%), Health Tech (12%), and CleanTech (10%) all attracting significant investment.
2. Early-stage resilience is demonstrated by 48 Pre-Seed and Seed deals, though the average deal size remains modest at £1.6M.
3. Series A stability (8 deals averaging £20.8M) indicates continued progress of some startups through the funding lifecycle.

As Q2 2025 continues, we’ll be monitoring several factors including:

• Whether the high early-stage deal volume in April translates to sustained activity
• How changes in macroeconomic conditions impact later-stage rounds
• If the trend of smaller average deal sizes continues, which could signal more cautious investor sentiment

This report was compiled with data from Crunchbase, Pitchbook, and direct submissions to London Tech Watch.

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