According to new research, investment in science and technology start-ups across the UK broke global trends to grow private sector investment in 2023.
Around the world, investment levels tapered off after the pandemic and this downward trend did impact the UK. However, the UK has maintained its lead in Europe and returned investment in science and technology closer to pre-pandemic levels.
Now, research from Barclays Eagle Labs has shown that 54% of founders say that funding availability is holding back the growth of their company.
The results follow the Department for Science, Innovation, and Technology’s launch of a new campaign aimed at driving domestic investment opportunities in scale-ups.
The ‘Science and Tech is our Superpower’ campaign aims to make sure businesses can access the funding they need to scale their success and boost long-term economic growth.
Technology Minister Saqib Bhatti 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.”
Start-ups in Wales and Yorkshire broke global trends
Businesses in Yorkshire and Humber saw an uplift of 20% in venture capital investments over the post-pandemic period, reaching new highs of over £200m in investment in 2023.
Welsh companies also attracted more investment in 2023, with funds increasing by 8.7% to £112m.
The UK’s investment landscape and opportunities abroad
Science and technology founders were found to be overwhelmingly optimistic (65%) about what the UK landscape meant for the next stage of their start-up journey.
The research also revealed that 15.8% of founders would sell their business to an international buyer as their preferred exit strategy.
This was closely followed by selling through private equity (15.5%) or to a UK buyer (14.4%), suggesting that there is potential for Britain’s investment opportunities to move abroad.
Promoting private sector investment in science and technology
The Department for Science, Innovation, and Technology’s promotion of private sector investment comes after the Chancellor’s Mansion House Reforms, which are unlocking up to £75bn for high-growth businesses, like start-ups in the science and technology space.
The work is underpinned by a commitment from UK pension funds and the venture capital community to work together to drive even more finance into scale-ups.
