New report from Music Technology UK (MTUK) reveals how public funding has helped to unlock private capital, with 14 Innovate UK–backed music tech firms later securing more than £17.5 million in private investment.
London, 10 February 2026 – A new report from Music Technology UK (MTUK), the UK trade association dedicated to supporting music tech innovation, reveals that Innovate UK has invested £14 million in UK music tech companies over the past five years (2020-2024) – with every pound invested returning £1.25 in additional private investment.
The report, titled Sound Investments: The Importance of UK Government Innovation Support, examines public sector funding into music tech companies and the extent to which this can unlock private capital, following last year’s launch of the inaugural Sound Investments report, which analysed the scale of private capital flowing into the UK music tech sector.
The research shows that Innovate UK’s investment amounted to 3.9% of total sector funding, and at least 14 funding recipients went on to raise £17.5m in follow-on private investment between 2020-2024, highlighting how public funding can serve as validation signal and stepping stone to larger investment rounds.
The news comes as the UK Government has announced a record £500 million funding package for research, development and innovation in the creative industries. This landmark commitment recognises the creative industries as central to the UK’s economic future.
A focus on R&D and music production, with London continuing to dominate
Innovate UK funding into music tech has trebled between 2020 and 2024, culminating in record funding of £6.5 million ($8.9M) in 2024.
Here are the key findings of the report:
- Between 2020 and 2024, Innovate UK funded a total of 141 awards across seven different funding categories. Approximately 85% of these (122 awards) were grants for R&D. Feasibility Studies represented the second-largest category with 16 awards. The remaining awards were distributed among smaller specialised programmes such as Contracts for Innovation, Knowledge Transfer Partnerships and Innovation Loans.
- Music tech companies focused on Production Tools received the most Innovate UK awards (15) over the five-year period analysed. Award recipients included AudioStack, Karno, Vochlea Music and RoEx. This category was followed closely by 13 awards given to Education Based Music Tech Companies (MusicGurus, UCan Play, Future DJs), 12 to GenAI Music Companies (DAACI, Bronze and soundpiece) and companies innovating in Digital Instruments / Music Making (Noise Orchestra, World Choir), and 10 given to Health/ Wellness Related Music Tech Companies (Music In Mind Remote, MediMusic, quietnote).
- London-based companies dominated music tech funding, capturing 59.55% of total Innovate UK awards, while the South East (10.21%) and North West (10.19%) were distant second and third. The remaining regions collectively accounted for approximately 20% of funding, with Northern Ireland (2.14%), Scotland (1.07%), and Wales (0.10%) receiving the smallest shares.
- Public funding remains less London-focused than private investment, with last year’s report showing that 94% seen in private investment was directed to London-based companies.
Matt Cartmell, Chief Executive, Music Technology UK, said:
“In a sector where technological advancement drives a £1.49 billion recorded music industry, government funding acts as a critical proof point for commercial investors. It signals quality, reduces risk, and helps bridge the gap between brilliant ideas and market-ready products.
“As our report proves, the formula is working for music tech, delivering £17.5 million in follow-on private investment on a £14 million public funding foundation. But with public funding amounting to just 3.9% of total sector funding, we’re leaving value on the table. Music tech needs a meaningful share of the Government’s £500 million creative industries package to catalyse private capital and scale music tech’s vast potential.
“MTUK’s strategic priority remains clear: gaining recognition of music tech’s centrality to the creative industries. The potential returns – economic, cultural, and technological – far exceed the investment required.”
Tom Fiddian, Head of Creative Industries, Innovate UK, said:
“Music tech is an important part of the UK’s creative industries and sits at the intersection of creativity and digital innovation. As the sector continues to evolve, including through greater convergence with areas such as AI and immersive technologies, it presents opportunities for innovation-led growth.
“Music Technology UK’s report shows how targeted public funding can support early-stage innovation, helping companies develop new capabilities, build credibility and attract further investment. Innovate UK will continue to work with industry, investors and partners across government to support the next wave of high growth potential companies in the UK’s music and creative tech ecosystem.”
Download the full report here.
MTUK and Innovate UK are hosting a webinar to present and discuss the key findings of the report on 12th February at 13:00 GMT. To find out more and register, please click here.
ENDS
About Music Technology UK
Music Technology UK is the UK’s trade association, support community, and forum for the music tech sector – bridging the gap between specialist music industry knowledge and the support needed for early-stage companies. MTUK was founded to drive recognition of the UK as a global leader in music tech innovation. With over 230 members, MTUK’s aim is to drive growth, foster innovation and build a healthier ecosystem.
Our first report, Sound Investments: The Case for UK Music Tech (July 2025), is available for download here.
About Innovate UK
Innovate UK is the UK’s innovation agency. We help UK businesses to grow through innovation. The government’s vision is for the UK to be a global hub for innovation by 2035. Our mission in achieving that is to help companies to grow through their development and commercialisation of new products, processes and services, supported by an outstanding innovation ecosystem that is agile, inclusive and easy to navigate. We help companies access the expertise and equipment they need, build the partnerships that will help them go faster, and fund the innovation work through grants or loans. We support the best ideas from business, as determined through free and fair competition.
Contact
Matt Cartmell
Chief Executive, Music Technology UK
matt.cartmell@musictechnology.uk
Press enquiries: MTUK@fourthpillarpr.com