• Swindon & Wiltshire Economy
• Tuesday July 29 2025

Investment in South West start-ups up by nearly a third

Venture capital investment into the South West’s start-up and scaling businesses increased in the second quarter of 2025, bucking the national trend, according to the latest KPMG Private Enterprise Venture Pulse report.

South West start-ups raised £37.9 million in the second quarter of 2025, compared to £29.3 million in the first three months of the year – an increase of nearly a third (29 per cent).

Twenty-one investments were concluded in the region compared to 15 in the previous quarter, highlighting increased appetite among VC investors looking to support the South West’s burgeoning start-up community.

The standout raise came from Portishead-based Q5D, an automated wire harness manufacturer, which secured £10.1 million to further develop its robotic systems that automate product electrification and reduce wiring assembly bottlenecks for major manufacturers.

Other Q2 deals targeted start-ups in clean technology, advanced manufacturing, life sciences, defence and artificial intelligence – all sectors at the heart of the UK Government’s Industrial Strategy.

David Williams, office senior partner for the South West at KPMG UK, said: It’s encouraging to see the South West’s start-up community staying resilient amidst a backdrop of slowing deal activity across the UK.

“There’s real momentum behind the region’s future-focused businesses – especially in clean tech, advanced manufacturing and AI. These companies aren’t just attracting investment, they’re helping to drive the UK’s next wave of high-growth industries and cementing the South West’s role as a centre for innovation.”