Science and technology start-ups in regions across the UK broke
global trends to grow private sector investment in 2023,
according to new research.
Businesses in Yorkshire and Humber saw a huge uplift of 20% in
venture capital investment through the period, reaching new highs
of over £200 million of investment in 2023. Welsh companies also
attracted more investment in 2023, with funds raised increasing
by 8.7% to £112 million.
Investment levels around the world tapered off after the pandemic
and this downward trend did impact the UK, however the UK
maintained its lead in Europe, and returned investment closer to
pre-pandemic levels.
Now, according to the research from Barclays Eagle Labs, more
than half of founders (54%) say the availability of funding is
holding back their company’s growth.
These results follow the Department for Science, Innovation and
Technology (DSIT)
launching a new campaign aimed at driving up domestic investment
opportunities in scale-ups. The ‘Science and Tech is our
Superpower’ campaign aims to make sure growth-ready
firms in the sector can access the funding they need from the UK
to scale their success, boost long term economic growth and
create jobs.
Launching the research at Barclay’s
Eagle Labs Industry Bridge event, which helps tech
start-ups grow by connecting them with major industry players,
Technology Minister said:
Whether it’s in AI, chips or bioscience, British science and tech
start-ups are thriving all over the country, and many are ripe
for investment.
We need investors to match the ambition of UK founders, and back
British innovation before our best investment opportunities
travel abroad for the funding they need to grow.
When looking at mergers and acquisitions, tech founders were
overwhelming optimistic (65%) about what the UK landscape meant
for the next stage of their start-up journey.
Though preferences were split, founders suggest that selling
their business to an international buyer (15.8%) is their most
preferred ‘exit strategy’.
While this was closely followed by selling through private equity
(15.5%) or to a UK buyer (14.4%), it shows that many of Britain’s
best home-grown investment opportunities could move abroad.
Amanda Allan, Director of Barclays Eagle Labs said:
At Barclays Eagle Labs we recognise that access to capital and
funding is important to ambitious tech businesses. As such
we’ve put a range of support in place to assist businesses
navigate the UK’s funding landscape including growth programmes,
such as the Funding Readiness Programme, which we run 4 times per
year, and connectivity tools such as Barclays Demo Directory.
DSIT’s
new push to promote private sector investment in high-growth
companies comes after the Chancellor’s Mansion House Reforms,
which are unlocking up to £75 billion for high growth businesses
like tech start-ups, underpinned by a commitment from UK pension
funds and the venture capital community to work together to drive
even more finance into scale-ups.
Targeting investors in key financial hubs across the country in
cities such as London, Birmingham, Edinburgh, Belfast and
Cardiff, the campaign will run on billboards strategically placed
200 metres within investor offices and on key commuter routes.
Wrapped copies of The Times will also be delivered to venture
capital offices, and digital adverts will run online and across
podcasts.
