Top 5 Startup Funding Options for Tech Businesses in the UK

Securing funding is one of the biggest challenges facing tech startups. Whether you're launching a groundbreaking AI application or developing the next big thing in cloud computing, knowing where to look for funding can make all the difference. In the UK, there are a variety of funding options that can help your tech business grow and thrive. Here are the top five options for UK-based tech startups to consider.

1. Government-Backed Start Up Loans

For early-stage tech businesses, securing a loan can often feel daunting, especially if you don't have a strong credit history or collateral. Fortunately, the UK government offers Start Up Loans, which provide unsecured loans between £500 and £25,000. The best part? These loans come with an affordable 6% fixed interest rate and 12 months of free business mentoring to help guide you through your startup journey.

Eligibility: Available to UK-based businesses that have been trading for less than 24 months.

Website: Start Up Loans

2. Seed Enterprise Investment Scheme (SEIS)

The Seed Enterprise Investment Scheme (SEIS) is one of the UK’s most powerful tools for early-stage fundraising. It allows startups to raise up to £150,000 by offering investors a 50% income tax relief on the amount they invest—making it highly attractive to angel investors.

Getting advance assurance from HMRC can significantly increase your chances of securing investment, as it shows potential backers that your startup qualifies under SEIS. If you're unsure where to start, Vestd offers a great service to help you obtain SEIS/EIS advance assurance—streamlining the process and helping you stay compliant.

Eligibility: Your business must be less than 2 years old, have under £200k in gross assets, and fewer than 25 employees.

Learn more: www.vestd.com

3. Innovate UK Grants

For tech businesses that are working on innovative products, solutions, or research, Innovate UK Grants can provide non-repayable funding. Grants range from £25,000 to £10 million, depending on the size and scope of the project. Innovate UK supports a wide variety of sectors, including tech, and is an excellent option for startups involved in R&D or cutting-edge technology.

Eligibility: The business must be working on innovative projects, with funding aimed at research and development or bringing new products to market.

Website: Innovate UK

4. Crowdfunding with Crowdcube 

If you're a tech startup looking to raise funds and generate buzz at the same time, Crowdcube is one of the UK’s leading equity crowdfunding platforms. It allows you to pitch your business to thousands of potential investors—from everyday supporters to seasoned backers—in exchange for equity in your company.

Crowdcube is particularly effective for tech startups with a compelling product, a strong brand story, or early traction. Many successful UK startups have launched and scaled thanks to Crowdcube campaigns, turning their users into shareholders and brand advocates.

Beyond funding, Crowdcube helps you build a loyal community around your product—an invaluable asset in the competitive tech space.

Eligibility: You'll need a strong pitch deck, a valuation, and ideally some customer traction or social proof. Crowdcube will review your application before approving it for public listing.

Website: Crowdcube

5. Techstars Accelerator

If you’re building a high-growth tech startup and want access to world-class mentorship, funding, and a global network, Techstars is one of the most prestigious accelerators you can join. With programs in London and cities around the world, Techstars invests in early-stage startups and helps founders rapidly scale their business.

Startups selected for Techstars receive $20,000 in seed funding, plus an optional $100,000 convertible note, in exchange for equity. More importantly, you’ll gain access to a curated 3-month program packed with hands-on mentorship, investor connections, and tailored workshops. Techstars alumni include companies like SendGrid, ClassPass, and DigitalOcean.

This accelerator is ideal for tech founders who are ready to scale fast and want long-term support from a community of successful entrepreneurs and investors.

Eligibility: Tech-driven startups with a strong founding team, an MVP, and a scalable vision. Programs are competitive—apply early with a standout pitch.

Website: Techstars