UK Startup Funding Report: £587.3m raised across AI, Healthtech and Cyber security (20–24 Jul 2026).
It's Friday, 25 July, and this is your UK Startup Funding Report.
A string of large rounds for AI startups and targeted raises in healthtech and cyber security dominated UK funding this week, accounting for major growth and deeptech bets. Total disclosed funding across the week came to £587.3M.
AI and robotics: investors back capital‑intensive hard tech
Applied AI and robotics startups are using machine learning to automate physical and industrial workflows, and this week’s financing rounds underline a clear investor appetite for capital‑intensive hard tech that marries software with hardware. Large checks across materials discovery, agentic industrial AI and humanoid systems are drawing both traditional venture capital and strategic industrial partners into longer‑horizon bets.
Cambridge’s CuspAI raised £335 million in a growth round led by Kleiner Perkins to build a global AI Materials Foundry and scale its MIRA platform, lab network and exclusive dataset partnerships across the US, APAC and Europe. London‑based Humanoid closed £114 million at a £1 billion post‑money valuation in a round led by Prime Movers Lab, with partners including Schaeffler, to accelerate development and manufacture of its wheel‑based humanoid robots for industrial use. Arrakis took in £22 million in a Blossom Capital‑led round to help industrial firms deploy bespoke AI agents for mission‑critical operations, while Oxford’s Mach42 secured £1.98 million to accelerate agentic‑ready simulation for analog semiconductor verification and broaden commercial adoption in EDA workflows.
Taken together, these rounds show investors are prepared to fund scaling from lab networks to manufacturing lines. Expect more deals that pair deep technical platforms with strategic industrial partners as teams push from prototype to production.
This week's AI & Robotics deals:
CuspAI raised £335m in a growth round led by Kleiner Perkins and NEA to build a global AI Materials Foundry and accelerate commercial expansion across the US, APAC and Europe. The funding will scale its MIRA platform, lab network and exclusive dataset partnerships to speed up industrial materials discovery.
Humanoid closed £114m at a £1bn post-money valuation to accelerate development and manufacture of its wheel-based humanoid robots for industrial use. The round, led by Prime Movers Lab with strategic partners such as Schaeffler, funds scale-up towards beta roll-out and mass production.
Arrakis raised £22m in a growth round led by Blossom Capital to help industrial firms deploy bespoke AI agents for mission-critical operations. The company will use the money to grow headcount, strengthen security and expand its platform across Europe, the US and the Middle East.
Mach42 closed £7m pre-seed to accelerate agentic-ready simulation for analog semiconductor verification, aiming to increase verification coverage and shorten engineering cycles. The funds will expand engineering teams and drive commercial adoption in EDA workflows.
Healthtech and biotech: regulatory funding meets commercial rollout
Clinical diagnostics and biotech spin‑outs are following distinct paths to market this week, from bedside AI diagnostics to late‑stage agrochemical programmes. These financings matter because the cash will fund regulatory work and commercial roll‑out at a time when both clinical and agricultural players are seeking product‑led innovation; investors are backing near‑term deployments alongside longer pipeline advances.
TidalSense raised £14 million to commercialise N‑Tidal Diagnose, a bedside device and AI that identifies COPD from roughly 75 seconds of normal breathing, and will use the proceeds to accelerate NHS and international rollout, expand indications and scale commercial teams. Moa Technology secured £22.2 million in a Series C co‑led by Oxford Science Enterprises and Supernova Invest to advance three late‑stage herbicide programmes towards market and to develop non‑herbicidal Moa Amplifiers, while expanding discovery work with industry partners.
The two deals illustrate differing capital profiles: device‑focused diagnostics demand funding to prove and deploy clinical utility, while agrochemical R&D requires longer‑term investment and regulatory engagement. Watch for announcements of clinical studies and commercial partnerships as the next signals of progress.
This week's Healthtech & Biotech (including Foodtech/Agritech) deals:
TidalSense raised £14m to commercialise N-Tidal Diagnose, a bedside device and AI that detects COPD from around 75 seconds of normal breathing. The funding will accelerate NHS and international rollout, expand indications such as asthma, and scale commercial and operations teams.
Moa Technology raised £22.2m in a Series C co-led by Oxford Science Enterprises and Supernova Invest to advance late-stage herbicide programmes and its non-herbicidal Moa Amplifiers. The funds will push three programmes towards market and expand discovery work supported by industry partnerships.
Greentech and materials: blended finance for bankable pilots
Startups tackling decarbonisation, energy analytics and low‑carbon materials attracted a mix of venture capital and public funding this week. The rounds and grants underwrite product development, demonstration projects and the data work needed to make green projects bankable; both commercial platforms and nature‑based supply chains are moving towards scalable pilots.
Modo Energy closed £12.7 million to develop its AI benchmarking and valuation platform for storage and renewables, including the Ko AI analyst, aiming to make forecasts more bankable for project financing. Birmingham‑based Furbnow raised £2.5 million in a seed round led by the West Midlands Co‑Investment Fund to scale its Home Digital Twin platform and expand retrofit services across the UK. Bristol’s Ponda secured a £2.4 million grant from DEFRA’s Farming Innovation Programme and Innovate UK to run a 30‑month wetland farming demonstration producing bulrush for its BioPuff insulation, testing agronomy, processing and supply‑chain economics while restoring peatland.
The funding mix highlights a pattern: venture capital backs commercial platforms, while public grants de‑risk nature‑based demonstration projects. Expect more blended‑finance approaches as teams prove technical feasibility and bankability in parallel.
This week's Greentech, Energy & Materials deals:
Modo Energy closed £12.7m to develop its AI benchmarking and valuation platform for storage and renewables, including the Ko AI analyst. The investment will fund product development and international sales as it seeks to make forecasts more bankable for project financing.
Furbnow raised £2.5m in seed funding led by the West Midlands Co-Investment Fund to scale its Home Digital Twin platform and expand retrofit services. The capital will grow the team, enhance the platform and roll out services to speed home energy upgrades across the UK.
Ponda secured a £2.4m grant from DEFRA’s Farming Innovation Programme and Innovate UK to lead a 30-month wetland farming demonstration producing bulrush for its BioPuff insulation. The project will test agronomy, processing and supply-chain economics while restoring peatland and reducing emissions.
Aerospace and defence: strategic capital tied to trials
Hardware and defence‑facing deep‑tech companies raised funding this week that is explicitly tied to sovereign supply chains and operational trials. Strategic investors and government programmes are increasingly important for firms building propulsion, launch systems and advanced detection technologies; these deals frequently link capital to demonstration trials and production scale‑up.
Greenjets raised £29.9 million in a Series A led by Blossom Capital and the NATO Innovation Fund to scale propulsion systems, expand production facilities and move into demonstration trials under the UK MOD’s LCADE programme. HALO X‑ray Technologies announced an undisclosed growth round led by Agilent Technologies with participation from UKI2S and MEIF to fund final regulatory approval and push its X‑ray diffraction system towards production and commercial deployment.
The involvement of strategic investors and defence‑linked funds this week underlines the sector’s reliance on demonstration programmes and sovereign partners. Expect more capital rounds where industrial and government stakeholders take meaningful stakes or provide funded trials.
This week's Aerospace, Defence & Deep Tech deals:
Greenjets raised £29.9m in a Series A led by Blossom Capital and the NATO Innovation Fund to scale propulsion systems and move into demonstration trials under the UK MOD’s LCADE programme. The cash will expand production facilities and support the company’s work on integrated propulsion for defence and launch applications.
HALO announced a growth round led by Agilent Technologies with participation from UKI2S and MEIF; the company did not disclose the amount. The investment will fund final regulatory approval and move its X-ray diffraction system towards production and commercial deployment.
Enterprise and consumer tech: defence, ARR and international scale
This week’s deals span enterprise software, security and consumer brands, reflecting investor appetite across B2B tooling and consumer product scale‑ups. Funding is being directed both at defensive security tooling and at consumer businesses preparing for international expansion, as investors balance niche security plays with bets on differentiated consumer propositions.
Ossprey raised £1.98 million in a pre‑seed round led by Episode 1 Ventures to detect malicious open‑source packages before they reach production and to build developer‑focused integrations. Leeds‑based Xentra secured £2.7 million from Maven VCTs and NPIF II to scale subscription‑based managed cybersecurity services for education and SMEs after strong ARR growth. Yope pulled in £9.2 million in a growth round led by Northzone to accelerate its private, algorithm‑free social network and open a US office, while London consumer brand MOTH raised £11 million to deepen UK retail distribution and accelerate US expansion for its premium ready‑to‑drink canned cocktails.
Taken together, these rounds point to a steady stream of investor interest in products that prevent operational risk and in consumer names ready to scale internationally. Expect follow‑on rounds that either bulk up security capabilities or fund channel expansion for consumer brands.
This week's Enterprise & Consumer Tech (Cybersecurity, Martech, Media & Retail) deals:
Ossprey raised approximately £2.0m in a pre-seed round led by Episode 1 Ventures to detect malicious open-source packages before they reach production. The company will use the funding to grow the team, expand scanning coverage and roll out developer-focused integrations.
Xentra raised £2.7m in a seed round from Maven VCTs and NPIF II to scale its subscription-based managed cybersecurity services for education and SMEs. The investment will fund hires, product development and regional expansion after strong ARR growth.
Yope raised £9.2m in a growth round led by Northzone to develop its privacy-first, algorithm-free social network and open a US office. The capital will be used to scale product development and test subscription-led growth outside the UK.
MOTH secured £11m to deepen its UK retail footprint and accelerate US expansion for its premium ready-to-drink canned cocktails. The round will fund convenience-channel growth and wider distribution while supporting marketing and operations.
🎧 That's this week's Startupmag Weekly Briefing.
See you next Friday for another look at the UK startup scene.