On January 22, 2025, the Royal Academy of Engineering launched its annual review of Britain's deep tech ecosystem.

In this context, deep tech is defined to encompass sectors such as life sciences and artificial intelligence.

The report highlighted that deep tech funding faced significant challenges in 2024, with deal numbers dropping below levels seen in 2016.

Total funding for deep tech companies in 2024 is projected to reach £6 billion, reflecting a trend of fewer but larger deals.

Notably, 32.5% of deep tech venture capital deals for UK companies in the first half of 2024 involved no UK investors, up from 29.8% in 2023.

Ana Avaliani from the Royal Academy pointed out that many investors have historically shied away from deep tech due to a lack of STEM backgrounds.

To address this gap, the academy has initiated a training program aimed at equipping 22 selected investors with the skills and networks necessary for assessing deep tech opportunities.

This training program is a collaborative effort between the Royal Academy of Engineering, Imperial College London, and the Department for Science, Innovation and Technology.

The report also noted that successful deep tech startups require patient investors, modern facilities, and reliable energy and computing power, which are often lacking in the UK.

Lord Vallance of Balham emphasized that many innovative companies struggle to grow or relocate from the UK due to insufficient access to capital.

Sir John Lazar, president of the Royal Academy, underscored the urgent need for improved access to knowledgeable venture capital investors for deep tech startups in the UK.

Having assumed the presidency in September 2024, Sir John Lazar aims to prioritize engineering's role in addressing key national and global challenges over the next five years.