The number of equity deals in Northern Ireland has risen by 17% in 2025 – more than any other region in the UK. The figures were revealed in the British Business Bank’s annual Small Business Equity Tracker.
Northern Ireland was one of only two regions across the UK to experience an increase in the number of equity deals, along with Yorkshire and The Humber. However, despite the rise in number of equity deals, the value of deals fell by 12% to £102m.
Meanwhile, the British Business Bank continued to play a significant role across the UK market, supporting 15% of all deals and 16% of investment between 2023 and 2025, with a particular focus on innovation-led businesses, including in AI.
Susan Nightingale, Senior Director, Northern Ireland, British Business Bank Local Growth Team said: “The increase in the number of equity deals in Northern Ireland, bucking the trend across much of the UK, is positive news. The decline in the value of deals reflects the market cycle playing out and underlines the importance of ensuring that all businesses are aware of the diversity of finance options open to them as they look to scale and grow.”
“The Bank’s activity in Northern Ireland reflects a continued commitment to addressing regional finance gaps. Across the UK, 84% of the Bank’s newly supported businesses in 2024/25 were located outside the London. This includes firms who have received funding via the Investment Fund for Northern Ireland’s £100 million commitment to smaller businesses here.”
The Tracker also shows that AI is reshaping the UK’s startup economy, attracting a record share of investment in 2025 and driving larger deals. AI companies accounted for 44% of total equity investment into smaller businesses in 2025, the highest share on record. AI also represented more than a quarter (26%) of all deals, nearly doubling its share since 2022. Investment in AI-related deals rose by 48% year-on-year, highlighting strong investor appetite despite a broader market slowdown.
Larger deals drive the UK smaller business equity market
Across the UK, investors concentrated capital into fewer, larger transactions in 2025 with the top 10 fundraisings accounting for nearly a quarter (23%) of all investment, the highest level since 2020. Equity investment into UK smaller businesses fell slightly, by 4% to £12.3bn in 2025, however, investment remained above pre-pandemic levels.
Lower levels of early-stage activity
While national growth-stage investment proved resilient, early-stage deals at seed and venture stages were 27% and 13% lower respectively in 2025. The Digital and Technologies sector remained the largest recipient of equity investment. Advanced Manufacturing saw strong growth in investment value in 2025, whilst Financial Services and Life Sciences were lower. Clean Energy and Creative Industries maintained stable investment levels, despite lower deal volumes, highlighting continued investor confidence in select growth opportunities.
British Business Bank accelerates investment activity
The British Business Bank has accelerated its pace of investment following the publication of its Five-Year Strategic Plan in November 2025. By increasing our annual deployment by two-thirds, we are unlocking around £26bn of private capital alongside £13bn of our funding over the next five years. The Bank is also deploying £4bn to boost the most promising businesses in the government’s eight Industrial Strategy sectors.