Grant funding awarded to spinouts from Innovate UK, theto 206, the lowest since 2016. Despite this retrenchment, Over the past decade, the UK spinout market has seen a UK's national inovation agency, has shown volatility over average grant size rose 10.96% to f423k,indicating that across mid-sized brackets. Deals over f50m made up more the past decade, with significant fluctuationsin both total capital is being concentrated into a more selective cohort gradual but marked shift towardslarger deal sizes,though than 2% of investment in all but one year of this period, 2025 shows signs of a potential reversal. value and award numbers. After 2023's peak, the sharp from smaller, seed-stage investments towards larger and During the first half of the decade,the spinout market waslater deals. and may reflect a shiftin government funding strategy. dominatedby smallerdeals, withinvestments under500k downturn. Innovate UK pausedits Smart Grants programme in January 2025, while its new Growth Catalyst programme peaking at 45.3% in 2020. This trend began to moderate this trend. The proportion of fundraisings below f500k rose across the wider UK market, 2025's particularly weak only opened in July of that year UK Researchand Innovation, between2021and 2024, when sub-500k deals accounted 9 percentage points to reach 36.7% of deals, while the share performance may also result from a move towards moreInnovate UK's parent organisation, is also transitioning to of deals in the top four brackets declined. This indicates that targeted support for a smaller group of companies. shifting priorities mayhave constrained short-term flows, Correspondingly, deals in larger brackets began to make of larger deals, but may instead reflect a market shift back The total value of awards fell 49.7%, from 173m in 2024 while signalling a more concentrated environment for to f87.1m in 2025, while award numbers dropped from 454 spinouts seeking public support.