Venture capital in physics deep tech

Unlocking finance for game-changing UK innovation and growth

About the report

Achieving sustainable and sustained economic growth is vital for the future of the UK. But it's only going to be possible by harnessing the innovative, problem solving, product generating power of the UK’s science and innovation community. Many of the deep technologies which look to tackle the biggest global challenges rely heavily on the work of physicists. In areas such as quantum technologies, photonics, medical devices, nuclear fusion, semiconductors or battery technology, the UK has real strengths to build on.

The UK has a strong footing in physics deep tech. With the largest venture capital market and highest levels of start-up and spinout activity in Europe, the UK is a great place for these physics deep tech businesses to grow. But right now, there are barriers holding back that potential.

This report sets out the funding gap for physics deep tech and barriers that are currently holding back investment. IOP analysis shows that larger venture capital investments in physics deep tech are too scarce, which is holding back UK physics deep tech businesses from consistently scaling up. By recognising the unique needs of physics deep tech businesses in access to finance initiatives, these barriers can be removed. In doing so, the rates of investment could reach parity with other sciences and £4.5bn more funding could be made available to physics deep tech businesses over the next five years.

Join us in our efforts to get physics deep tech recognised as a subset of deep tech to address the barriers that are holding back investment.