UK tech layoffs fell by 20% in April while VC deal volume climbed 15%, led by fintech and health-tech renewals.

Labour Market Overview

Fintech and health-tech firms slowed cuts, reflecting stronger long-term demand.

Layoffs by Sub-Sector

Fintech layoffs plunged as firms refocus on profitability and expansion.

Health-tech saw minimal cuts amid surging innovation demand.

Enterprise software retained talent for scalable solutions.

E-commerce still trimmed staff to optimize operations.

Regional Insights

London led the slowdown, especially in fintech and health-tech.

Midlands and Manchester saw moderate declines; Scotland’s health-tech held firm.

VC Funding Revival

April’s 15% funding surge was driven by Series A and B bets on profit-path ventures.

Inflows by Stage

Series A jumped 18% for fintech targeting SME and embedded finance.

Series B rose 12% in health-tech powering AI diagnostics and care.

Companies to Watch

Publicly Listed

Darktrace (DARK): AI-driven cyber defense attracts growth investors.

Wise (WISE): Leading cross-border fintech with strong consumer trust.

Oxford Nanopore (ONT): Health-tech pioneer in rapid DNA sequencing.

Unicorns

Revolut (~$33 bn): Consolidating banking, FX, and crypto amid regulation.

ZOE (~$800 m): Personalised nutrition leader using microbiome data.

Actionable Allocation Ideas

Growth-Oriented

Back health-tech and enterprise software for innovation-driven returns.

Value-Oriented

Seek resilient cyber-security and mature fintech names for stability.