Manchester’s tech founders are calling for greater investment into Manchester’s tech ecosystem to build on the successes of 2021, and cement Manchester as a global hub for tech
Tech Nation’s data has revealed that VC investment in Manchester technology scaleups reached record high in 2021 of $418mn, up from $255mn in 2020 – a 63% increase
Companies receiving investment last year included Peak and Sourceful, two fast-scaling tech companies that have been through Tech Nation’s Future Fifty and Net Zero growth programmes
Manchester is home to the largest startup and scaleup population outside of London (868 tech companies, compared to 702 in Cambridge and 652 in Edinburgh)
The combined value of tech startups and scaleups in Manchester was $16.9bn in 2021, up from $15.3bn in 2020 (a 10.5% increase)
In the North West of England, as of June 2021, there were over 100,000 tech jobs advertised, a 12% increase from the previous month
Despite Manchester’s successes in 2021, founders emphasised that in order for the tech sector to reach its full potential, more must to be done to replicate this success in 2022 – including more access to finance and mentoring
Stephen Kelly, Chair of Tech Nation, said: “Manchester is globally renowned for outstanding football teams and buzzing music, and the stage is now set for the city to be a hive for home-grown, high growth tech businesses. I’ve been at the Bonded Warehouse coworking space hearing from local companies, including The Modern Milkman and PixelMax who have all had massive achievements in securing funding to make incredible ideas become a reality.
“They provide the inspiration for why we should all raise our ambition levels for the UK tech sector – and specifically our North West powerhouse – they’re living the philosophy of ‘grow fast or die slowly’. We need Manchester and all other major cities to embed digital into their economies – it’s not an either-or.”
Mo Aldalou, Tech Nation’s Scaleup Engagement Manager from the North West, said: “Today, we had an incredibly thought-provoking discussion with some of Manchester’s fastest-growing tech scaleups and key stakeholders. It’s clear that the city’s tech ecosystem is going from strength to strength, attracting record levels of investment and producing a number of future unicorns.
“Manchester is renowned for its history and strength in Retail and E-commerce, which has contributed an enormous amount to the local economy and given birth to a thriving ecosystem, with Fintech and Cyber following closely behind.
“But it’s important to not get complacent. We can wait patiently for the flywheel to start spinning or we can take action today and do more as an ecosystem to support Manchester’s ambitious founders.”
David Foreman, co-founder and managing director, Praetura Ventures: “We’re at a pivotal point for Manchester’s tech scene. Some local success stories are now turning heads on the world-stage but we need to do more as an ecosystem to support the next generation of tech heroes. Founders are still forced to look further afield for funding, and Praetura wants to work with networks like Tech Nation to change that.
“We also need better bridges between public and private sector funds to create the best environment for scale ups possible. Both sides need to focus on fuelling exceptional businesses so they can meet their potential, as opposed to just trying to meet our own individual mandates.”
