Start-Up Surge From biotech breakthroughs to green energy and tech sovereignty, agile start-ups are set to drive the UK's most disruptive innovations in 2026.

In 2026, start-ups will no longer just complement big players - they'll set the pace. Dr. Karim Bahou, Head of Innovation at Sister, explains how AI is accelerating drug discovery, how early-stage companies are helping the UK achieve tech sovereignty, and why green tech ventures will lead the fight against climate change. With access to cutting-edge data, expert networks, and supportive ecosystems, these nimble businesses are positioned to transform biotech, energy, and beyond. Entrepreneur UK finds out more about Bahou's predictions for 2026...

Start-ups will increasingly lead AI-driven breakthroughs in biotech
In 2026 we're going to see the continued convergence of AI and high growth sectors in life sciences - in particular biotech, where AI is already being used to accelerate drug discovery and precision medicine at rates we've never seen before. While big pharma have large budgets to drive R&D - like AstraZeneca and GSK which account for 90% of health-related R&D - it will be the specialised early-stage businesses working with the latest AI or quantum technology that will drive disruptive breakthroughs in biotechnology. The UK Biobank, based in Manchester, is enabling these breakthroughs by facilitating access to genomic and other biological data to help understand and predict emerging pathogens and develop personalised treatment. This kind of work will become increasingly important over the coming years, and will influence the widespread implementation of AI technology into the health and life sciences sectors. AI is also being leveraged in healthcare to speed up hospital workflows or have virtual appointments with GPs. As the demand for new cutting-edge solutions to ongoing healthcare challenges increases, agile start-ups will increasingly set the pace of innovation.

Government will turn to start-ups to achieve greater tech sovereignty
Strengthening the UK's sovereign tech capability will become an increasing priority in 2026. Building more resilient, domestic supply chains is a critical priority for the government following its Defence Industrial Strategy, and we'll see the private and public sector continue to work closely to reduce reliance on imports for things like technology, infrastructure and talent. For start-ups who may have previously been priced out due to the need to import technologies from abroad, they will have the chance to play a more central role in laying the foundations for tech sovereignty, such as coming up with innovative solutions to power the nation's AI datacentres sustainably. We're home to world-leading universities and exceptional talent across the UK who are leading the charge in driving significant advancements. Our academics and researchers are brilliant at innovating, but they often struggle to translate their pioneering research into successful commercial ventures. According to the OECD, the UK is 3rd in the world when it comes to producing start-ups, but falls to 13th place for the number of businesses that scale up successfully - significantly behind countries like the US and China who are leading the charge in scaling start-ups. This is why it is crucial to invest in domestic supply chains and more supportive ecosystems, to accelerate opportunities for start-ups to grow their businesses on home soil with help from industry experts and investors.

Start-ups will lead the green tech revolution
In 2026, start-ups will continue to spearhead green tech in the UK and lead innovation in this sector. There are almost 16,000 green tech companies across the country, with the majority being in the seed (31%) or venture stage (24%), who are leading the way in developing unique and innovative solutions to the climate crisis. We need these businesses now more than ever, especially when global warming is predicted to reach as high as 3°C - double the Net Zero target of 1.5°C agreed by global nations. Innovative start-ups will create the solutions to help get us back on track, but they need better access to funding to overcome barriers to scaling, such as high operational costs. Part of the solution is encouraging further collaboration between start-ups and innovative energy providers such as Octopus Energy to develop their solutions at competitive prices. At Sister, an innovation district that is home to Sustainable Ventures' northern climate tech hub, start-ups are being connected with established organisations, investors, and industry experts who can accelerate their growth. If the UK wants to be a leader in the clean energy transition, it must act now to help start-ups reach their full potential.