Innovation and entrepreneurship within the North West’s tech industry are in rude health, despite a number of funding challenges, according to a new report published by leading independent law firm Brabners and commercial strategy consultancy Whitecap Consulting.
Based on the findings of more than 50 in-depth interviews with entrepreneurs and funders from across the region, the North West Tech Funding report explores the positive funding environment experienced by the North West’s tech start-ups.
By identifying the key challenges and opportunities in the sector, the report seeks to inform the development strategies of firms looking to gain a footing in the industry as it bounces back from the pandemic. It also presents business owners with investor insight – including from angels, private equity houses and venture capitalists – on how to make the most of existing funding opportunities in the region. This includes exploring key trends around valuation, dilution and investment terms post-Covid.
Launching the report, Piers Dryden, head of technology at Brabners, said: “Despite the challenges outlined in this report, those challenges are eminently surmountable and opportunities for growth abound” – with exciting and innovative businesses continuing to fuel the North West’s reputation as a digital powerhouse. However, to ensure the sector fulfils its growth potential, it’s imperative that entrepreneurs and start-ups understand the funding pathways open to them.
“This report is about pulling away from the statistics and the headlines to truly understand what it’s like trying to raise capital as an entrepreneur in the North West. What we’ve seen is a tight knit network of investors, supporting good businesses – whether through investment or advice – to ensure that novel ideas make it to market and have every chance of succeeding.”
Luke Freeman, director at Whitecap Consulting, said: “As we move out of the economic uncertainty of the past 12 months, we’re extremely encouraged by the health of the tech start-up scene in the North West, the wealth of funds available to them and the far-reaching investor networks in the region, particularly in Manchester and Liverpool.
“We hope that this report can act as a catalyst for business owners hoping to convert their start-up into a viable high growth proposition, informing their approach to securing the support of knowledgeable and experienced investors.”