Business & Technology
AI firms take record 44% of UK small business funding
The British Business Bank has published its 2026 Small Business Equity Tracker, which shows that AI companies took a record 44% share of UK smaller-business equity investment in 2025.
Overall equity investment in smaller UK businesses fell 4% to £12.3 billion in 2025, even as investors continued to back larger transactions. The top 10 fundraisings accounted for 23% of all investment, the highest level since 2020, pointing to a market increasingly shaped by a small number of sizeable deals.
AI was at the centre of that shift. The sector accounted for 26% of all deals in 2025, almost double its share in 2022, while investment in AI-related transactions rose 48% year on year.
The findings suggest investors are concentrating capital in businesses seen as having stronger growth prospects, while funding conditions remain more difficult for smaller and earlier-stage companies. Seed-stage deals fell 27% in 2025, and venture-stage deals were down 13%.
Growth-stage investment was more resilient. Digital and Technology remained the largest recipient of equity funding, while Advanced Manufacturing recorded strong growth in investment value. Financial Services and Life Sciences saw lower investment, while Clean Energy and Creative Industries were broadly steady despite lower deal volumes.
Spinout activity
The report also highlighted the role of university spinouts in the UK funding market. Venture capital deal volumes for spinouts rose 95% in 2021-2025 compared with 2016-2020, a faster growth rate than in the United States, Germany and France.
Adjusted for the size of the research base, the UK recorded the highest number of venture capital-backed spinouts among its international peers. The Bank supported 16% of spinout deals, above its 12% share of the wider market.
That momentum weakened in 2025. UK spinout equity deals fell 33% year on year, and investment value dropped 51%, indicating that this part of the market was not immune to the broader slowdown.
The data also pointed to a gap with the United States in overall venture capital funding. UK venture capital investment in 2023-2025 was 32% lower than in the US when adjusted for economy size, although the US figures were affected by a small number of very large deals.
Regional shifts
Outside London, several parts of the UK posted sharp increases in investment. The North West recorded an 82% rise in equity investment in 2025, Scotland increased 74%, and the South West climbed 104%.
Those gains were linked to a small number of large AI and energy deals. London remained the largest market, but its share of UK equity investment fell from 60% in 2024 to 57% in 2025, suggesting some reduction in the capital’s dominance.
Between 2023 and 2025, the British Business Bank supported 15% of all deals and 16% of total investment. Its activity focused particularly on innovation-led businesses, including AI companies and university spinouts.
The institution has also increased the pace of its own investment activity since setting out its five-year strategy. It plans to unlock around £26 billion of private capital alongside £13 billion of its own funding over five years, while also deploying £4 billion across the government’s eight industrial strategy sectors.
It is also committing £2.6 billion to support entrepreneurs across the UK, including through two new Nations and Regions Investment Funds.
Leandros Kalisperas, Chief Investment Officer at the British Business Bank, placed the Bank’s reading of the market in the context of the current funding cycle.
“While we are seeing signs of the market cycle playing out, the British Business Bank is accelerating deployment of investment across the cycle, and ensuring promising businesses can continue to access the finance they need to start, scale and stay in the UK. The concentration of investment into AI highlights both the scale of the opportunity and the challenges within the wider market. Ensuring capital is available across sectors and stages will be critical to maintaining a diverse and competitive pipeline of UK companies,” Kalisperas said.
Michael Moore, Chief Executive, UK Private Capital, pointed to the UK’s standing in spinouts despite the slowdown in 2025.
“The UK should celebrate the strength of our spinout ecosystem – outpacing the US, France and Germany is no mean feat, but it’s important that we build on this competitive advantage in years to come. The British Business Bank is playing an important anchor role in helping develop this ecosystem and growing an investor base of larger VC funds. Nurturing these start ups and ensuring they can access the right capital at the right time will encourage more companies to scale and stay in the UK,” Moore said.
Business & Technology
Oxfordshire business mentor releases brutally honest book
Mike Foster, who was born and raised in Kidlington, has written The Financial Times Guide to Starting a Business, which combines practical business guidance with insights into the entrepreneurial mindset.
Now based in Didcot, Mr Foster coaches business owners by reviewing critical aspects of their operations, identifying areas of focus, and developing tailored strategies.
Mr Foster said: “Many start-up guides focus solely on the mechanics of launching a business.
“But I wanted to be brutally honest about the realities and challenges entrepreneurs will face, sharing from my own journey which has included both big successes and a six-figure setback.”
The book is his second publication, following 2023’s 105 Ways to Accelerate Your Business Success.
He also contributes to the community through his work in schools, having served as an enterprise advisor for Enterprise Oxfordshire (formerly OxLEP).
In that role, he supported Didcot Girls School and helped the organisation recruit 40 equivalents in secondary schools across the county.
The new book covers everything from idea development and marketing to finance, legal structures, and operations.
It aims to help readers assess whether they are mentally prepared for entrepreneurship.
Written as a step-by-step guide, the book offers practical, actionable advice and encourages readers to consider the mindset needed to build confidence and avoid common start-up pitfalls.
The Financial Times Guide to Starting a Business is available now in paperback and e-book formats from Amazon, Waterstones, and other major retailers.
Business & Technology
SSEN to offer free, personalised energy advice to customers
The service is available across central southern England and the north of Scotland through a partnership with energy efficiency charities Changeworks and the Centre for Sustainable Energy (CSE).
It offers support with fuel poverty, energy bills, and low-carbon technologies.
Eliane Algaard, director of customer operations at SSEN, said: “We know that many of our customers are looking for trusted, practical advice to help them manage energy costs, improve the comfort of their homes, and make informed choices about low-carbon technologies.
“By working with Changeworks, we can offer our customers access to specialist support that reflects the different needs of the communities we serve, from rural and island locations in the north of Scotland to towns and cities across central southern England.
“This partnership builds on the support we already provide for customers who may need extra assistance and enables us to help even more households to access the right advice at the right time.”
Customers can access the free advice via phone, online, or in person.
The programme will also proactively identify individuals in need through outreach activities, including promotion of the Priority Services Register, distribution of energy-saving kits, and advice on making homes more sustainable.
Changeworks brings nearly 40 years of experience delivering energy efficiency support in Scotland, while CSE has worked with SSEN since 2021 through the Cosier Homes Advice project in central southern England.
Morven Masterton, head of community engagement and energy advice services at Changeworks, said: “Changeworks is delighted to be partnering with CSE to deliver this important SSEN initiative, supporting customers across the two regions.
“Together, our organisations bring extensive local knowledge, strong partnerships, and well-established networks.
“By integrating this programme into the existing support available in each area, we will be able to maximise its reach and deliver an even greater impact for the customers and communities we serve.”
CSE has over 45 years’ experience helping people reduce energy costs and improve home comfort.
Karn Shah, head of advice at CSE, said: “Energy bills remain high, and more people are struggling to keep up.
“This new partnership with Changeworks and SSEN means we can reach even more households who need practical, impartial advice to help them cut their bills, ensure their homes are a safe temperature and more energy efficient, and understand their route to a low-carbon future.”
SSEN said the scheme would support warmer homes, lower bills, and a fair transition to a low-carbon future.
Business & Technology
Schneider backs AI-era condition-based maintenance
Schneider Electric has published an IDC white paper on maintenance in AI-era data centres, arguing that calendar-based maintenance is no longer fit for purpose in many facilities.
The report says rising rack densities, multivendor estates and shortages of skilled technicians are forcing operators to rethink how they maintain critical equipment. It makes the case for condition-based maintenance, which uses monitoring and analysis of asset behaviour to identify faults earlier and reduce unnecessary service interventions.
Schneider Electric linked the findings to its EcoCare service model, which combines remote monitoring, expert oversight and predictive fault analysis. It said the approach shifts maintenance away from fixed schedules towards interventions based on equipment condition and operating limits.
IDC said the operational backdrop for data centre operators has changed sharply as AI workloads grow. The paper notes that rack power densities have increased from about 15kW per rack in standard data centres to 300kW to 600kW in AI-heavy compute zones, adding pressure on uptime and infrastructure resilience.
That shift is being compounded by the way operators are expanding capacity. According to the research, many are relying on existing installed bases, distributed campuses, on-site generation and brownfield strategies through mergers and acquisitions of local service providers, rather than building entirely new facilities.
Operational strain
The white paper also highlights the complexity of fragmented multivendor environments. Operators that acquire existing facilities can inherit equipment from multiple suppliers without a full operating history, creating challenges when integrating it into asset performance management systems.
“When operators acquire existing facilities rather than build from scratch,” said Luis Fernandes, Senior Research Manager, IDC, “they introduce unknown equipment configurations from multiple vendors, with no operational history, requiring immediate integration with asset performance management systems.”
Labour shortages add to those pressures. The research said the supply gap for skilled technicians has reached unsustainable levels, citing a US example where there is only one qualified person taking up a position for every seven open roles. Operators are struggling to recruit across electrical, mechanical cooling and commissioning roles, including positions that require specialist certification for high-voltage systems.
Against that backdrop, the study argues that fixed maintenance intervals are becoming less suited to the realities of AI-led data centre operations. Rather than carrying out work simply because of a date on a calendar, condition-based maintenance uses equipment data to determine when intervention is actually needed.
Schneider Electric said early adopters of AI-supported condition-based maintenance have reported fewer manual interventions, lower operating expenditure, less unplanned downtime, longer asset lifetimes and better efficiency. It added that its EcoCare offering can deliver up to a 75% reduction in unplanned downtime and a 20% reduction in operating expenditure, while also reducing risk.
Predictive model
Jerome Soltani, Global Head of Services at Schneider Electric, described the model as one focused on identifying abnormal behaviour in equipment and systems earlier. He said combining remote monitoring with AI-assisted orchestration can improve visibility into asset health and reduce disruption from unnecessary maintenance activity.
“By combining remote monitoring capabilities with AI-assisted orchestration, you can gain insights regarding the health of your assets and systems, and get an early identification of abnormal behaviour that might precipitate a failure,” Soltani said.
“This ensures that downtime is minimised, but also that equipment working within specification is not disturbed or needlessly addressed.”
IDC frames the issue as part of a broader shift in how operators manage infrastructure in more complex environments. Instead of treating maintenance as a routine schedule, the paper describes a model in which software-led analysis and human oversight combine to create a more continuous picture of system health.
Fernandes put that argument directly: “Your maintenance schedule doesn’t know when something is failing – your equipment does.”
He added: “Condition-based maintenance is an optimised operating model for AI-era infrastructure that reduces manual interventions, lowers OpEx, and extends asset lifecycle. By scaling predictive analytics to correlate behaviour across every vendor, asset, and failure trajectory, condition-based maintenance enables operators to build machine-driven, human-validated system intelligence.”
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