February Fundraising Feature: UK & NY
Welcome to our second Fundraise Feature, in which we bring you an overview of the Seed - Series B tech fundraises from across the United Kingdom and New York, that were announced in the month of February.
We will also share last month's notable deals and the main investors that backed these exciting raises, all thanks to PitchBook's research.
United Kingdom
Data provided by Pitchbook
Highest Capital Investment
Artificial Intelligence led the way with over £140M in investment, closely followed by SaaS at £140M and FinTech at £100M.
It's no surprise that AI and SaaS are attracting so much investor interest - they have broad applications across industries like HealthTech, finance, and data, making them key drivers of innovation. Fintech continues to be part of the top 3 most invested industries due to it’s high growth potential, with increasing adoption of digital banking, payments, lending, and wealth management solutions.
We would like to spotlight some of the companies that received funding from these industries:
Shop Circle , a developer of e-commerce software designed for independent brands to scale their stores, has secured the largest deal last month with £60M in their Series B funding round.
Flow48 , a revenue-based financing platform intended to provide capital and stabilize the cash flow, has secured over £55M in their Series A funding round.
ClimateTech and CleanTech also saw strong backing, bringing in £70M and £55M, respectively. This comes as no surprise, as Governments, corporations, and consumers are increasingly prioritizing sustainability.
44.01 , a provider of carbon dioxide mineralization services intended to help companies eliminate their captured carbon dioxide, has raised nearly £35M in their Series A funding round.
IONATE , a company that enables their clients to improve efficiency and lose less energy, has raised over £13M in their Series A round.
Notable Investors
Investors in Venture Capital markets play a crucial role in fuelling innovation and economic growth by providing startups with the necessary funding to scale and succeed.
Last month, the top investors in the UK were:
Fuel Ventures 🚀 , having provided backing for Alfa, Augmetec and HowNow.
Endeavor Catalyst , for supporting the growth of Flow48 and Shop Circle
Index Ventures , providing capital to Adfin and Plain.
Funding stages
Understanding the funding stages distribution helps us better understand the bigger picture in the fundraising world. Last month in the UK, the investments were split between these stages:
Series A leading the way, as 68.81% of funding was allocated towards companies in this stage, very likely due to these businesses having validated business model, and strong growth potential.
Series B sits comfortably in the middle, receiving 19.34% of funding, as companies in this stage tend to have established a solid revenue stream, and are now focused on scaling operations, expanding into new markets, and optimizing efficiency.
Seed in third place, with 11.85% of investment was towards companies in this stage. Companies at the Seed stage, although they may not have a solid foundation under their feet just yet, offer the investors early access to equity in what could become the next big success story.
Summary
The UK's Seed to Series B tech investment landscape remains strong, with over £320M raised in February, highlighting continued investor confidence in high-growth sectors like AI, SaaS, and FinTech.
As investment trends continue to evolve, sectors that drive efficiency, digital transformation, and environmental impact are expected to attract even greater capital in the coming months, signalling that the UK’s startup ecosystem is well-positioned for further expansion.
New York
Data provided by Pitchbook
New York’s funding landscape was busy in February, with 50 deals closed, with the total capital invested being just under £450M.
Highest Capital Investment
When it comes to the top five industries, New York follows a similar trend to the UK, with AI and SaaS leading the way, however with a bigger gap in investment size. AI secured over £180M in funding, while SaaS brought in just over £120M.
For the last month, we would like to highlight the following companies:
Andium , a platform using its technology to offer an ecosystem of automated products and services that provide modern remote monitoring capabilities, has raised over £17M in their Series B round.
Lingopal , a developer of AI-powered video translation and localization solutions designed for breaking down language barriers in videos, received £11M in their Series A funding round.
HealthTech, Mobile and LegalTech received similar investment values, ranging between £80M and £90M.
Achira , an operator of a biotechnology company intended to power the future of drug discovery, secured over £26M in their Seed round.
Justpoint , an operator of an artificial intelligence algorithm-based platform intended to analyze individual personal injury claims, having secured the highest amount of investment last month – over £76M in Series A funding round.
Notable Investors
Investors provide the necessary capital that enables businesses from all stages to flourish and establish solid foundations, as well as promotes innovation and fuels a more competitive market which pushes companies to become their best.
Last month, New York saw 2 main players:
Y Combinator , having supported &AI, Camber and Trayd with their early stage funding.
Bloomberg Beta, fuelling the expansion of Enigma and Trayd.
Funding Stages
In February, the capital allocation in New York was equally split between early stage and later stage companies with:
Seed funding allocations sitting at 32.05%, the funding stage where the investors have a chance to invest into the possible next unicorn company.
Series A received 36.98%, a stage where investors get in before explosive scaling, benefiting from early valuation jumps.
Series B secured 30.97% of overall capital invested, a stage where companies mostly use the capital to enter new markets, expand and boost revenue.
Summary
February was a big month for tech investment in New York, with the total capital invested sitting close to £450M and with top industries being AI and SaaS. Last month saw investment being allocated equally across the Seed – Series B funding stages, showing that investors are diversifying their portfolios and spreading the risk, rather than concentrating on only one growth stage.
As funding trends shift and new players enter the scene, we are excited to see what March brings.
Stay tuned for next month’s update!
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