In 2024, non-London startups secured over £4.2 billion in venture funding, representing a 27% increase from the previous year. This trend is expected to accelerate in 2025, with government initiatives supporting regional development and VCs recognizing the value proposition of startups operating with lower costs outside the capital.
Venture capital investment distribution across UK regions (2025)
Table of Contents
Get Your Regional VC Funding Guide
Download our comprehensive guide to approaching and securing funding from venture capital firms outside London. Includes templates, pitch strategies, and exclusive insights from regional investors.
Selection Criteria for Top Venture Capital Firms Outside London
Our analysis of the top venture capital firms investing outside London in 2025 is based on several key factors that demonstrate their regional impact and investment prowess. We’ve evaluated these firms based on comprehensive data and market intelligence to provide entrepreneurs with valuable insights into the most active and influential non-London VCs.
Investment Activity
We analyzed deal volume and value between 2023-2025, focusing on firms with consistent investment patterns outside London. Only VCs with at least 15 regional deals during this period were considered.
Portfolio Diversity
We evaluated sector diversity, with particular attention to investments in high-growth areas like AI, climate tech, and healthtech. Firms with balanced portfolios across multiple sectors scored higher.
Regional Impact
We assessed each firm’s contribution to regional economic development, including job creation, infrastructure development, and ecosystem building in areas like the Midlands, Northern England, and Scotland.
Top 10 Venture Capital Firms Investing Outside London 2025
Our research has identified these venture capital firms as the most active and impactful investors in regions beyond London. Each has demonstrated a strong commitment to building regional tech ecosystems and supporting innovative startups across the UK.
1. BGF (Business Growth Fund) – Birmingham
Key Sectors & Funding Stages
- Growth-stage companies across technology, manufacturing, and healthcare
- Typical investment range: £2-10 million
- Minority stakes with active board participation
- Focus on established businesses with proven revenue models
Notable Investments
- Oxbotica (Oxford) – Autonomous vehicle technology
- ROVOP (Aberdeen) – Subsea robotics services
- Woodland Lakes Lodges (Yorkshire) – Sustainable tourism
2025 Strategy Highlights
BGF has committed an additional £300 million specifically for regional investments in 2025, with a particular focus on climate tech and advanced manufacturing. Their new “Regional Champions” program provides enhanced support packages for portfolio companies, including international expansion assistance.
What makes BGF stand out is their extensive regional network of 14 offices across the UK, providing truly local expertise and connections. Their patient capital approach, with no forced exit timelines, is particularly attractive to founders seeking sustainable growth.
2. Mercia Asset Management – West Midlands
Key Sectors & Funding Stages
- Software, digital entertainment, life sciences, and manufacturing
- Investment range: £100,000 to £10 million
- Seed to Series B funding stages
- Specializes in university spinouts and deep tech
Notable Investments
- PsiOxus Therapeutics (Oxford) – Immuno-oncology
- Sense Biodetection (Oxford) – Molecular diagnostics
- Voxpopme (Birmingham) – Video feedback SaaS
2025 Strategy Highlights
Mercia has launched a dedicated £100 million “Northern Powerhouse” fund in 2025, specifically targeting startups in Manchester, Leeds, and Newcastle. Their new “Scale-Up Academy” provides portfolio companies with specialized growth resources and mentorship.
Mercia stands out for their “Complete Capital Solution” approach, offering multiple funding options from seed to scale-up through various managed funds. Their deep relationships with 19 universities across the regions provide unique access to cutting-edge technologies and talent.
3. Par Equity – Edinburgh
Key Sectors & Funding Stages
- Technology, renewable energy, and healthtech
- Investment range: £500,000 to £5 million
- Early-stage to Series A
- Focus on Scotland and Northern England
Notable Investments
- Sunamp (Edinburgh) – Thermal energy storage
- Current Health (Edinburgh) – Remote patient monitoring
- Money Dashboard (Edinburgh) – Personal finance platform
2025 Strategy Highlights
Par Equity has established a new £75 million “Scottish Tech Growth Fund” in partnership with the Scottish National Investment Bank. Their 2025 focus includes increased investment in climate tech and AI startups with regional operations.
What makes Par Equity unique is their hybrid investment model that combines institutional capital with an active angel investor network. This provides portfolio companies with both funding and access to experienced entrepreneurs who can provide hands-on support and industry connections.
4. Parkwalk Advisors – Cambridge
Key Sectors & Funding Stages
- Deep tech, life sciences, and advanced materials
- Investment range: £250,000 to £5 million
- Seed to Series A
- Specializes in university spinouts
Notable Investments
- Oxford Photovoltaics (Oxford) – Solar technology
- YASA Motors (Oxford) – Electric motor technology
- Congenica (Cambridge) – Genomic analysis
2025 Strategy Highlights
Parkwalk has expanded their university partnerships in 2025 to include collaborations with Manchester, Bristol, and Leeds universities. Their new “Science to Scale” program provides enhanced commercialization support for academic innovations.
Parkwalk stands out as the UK’s largest EIS fund manager focused on university spinouts. Their deep relationships with technology transfer offices at Oxford, Cambridge, Bristol, and Edinburgh universities provide unparalleled access to cutting-edge intellectual property with commercial potential.
5. Maven Capital Partners – Glasgow
Key Sectors & Funding Stages
- Software, energy services, and business services
- Investment range: £1 million to £15 million
- Growth capital and MBO/MBI transactions
- Regional focus across Scotland and Northern England
Notable Investments
- ITS Technology Group (Chester) – Fiber infrastructure
- AVID Technology (Northumberland) – Clean energy engineering
- Push Technology (Belfast) – Real-time data delivery
2025 Strategy Highlights
Maven has secured £120 million for their new “UK Regional Growth Fund” in 2025, specifically targeting businesses in underserved areas. Their enhanced regional presence now includes new offices in Newcastle and Cardiff to provide truly local support.
Maven distinguishes itself through management of multiple regional funds on behalf of the British Business Bank and other public sector organizations. This provides them with unique insights into regional economic priorities and access to co-investment opportunities that amplify their impact.
6. Octopus Ventures – Bristol Office
Key Sectors & Funding Stages
- Health, fintech, deep tech, and B2B software
- Investment range: £1 million to £10 million
- Seed to Series B
- Focus on scalable technology businesses
Notable Investments
- Orbex (Moray) – Space launch technology
- WaveOptics (Oxfordshire) – AR waveguide technology
- Elvie (Bristol) – Femtech products
2025 Strategy Highlights
Octopus has established a dedicated £80 million “Regional Champions” fund in 2025, specifically for businesses outside London. Their new Bristol office serves as a hub for southwestern investments, with specialized teams focused on deeptech and healthtech.
While Octopus maintains its London headquarters, their commitment to regional investment has intensified with their “Beyond London” initiative. Their pioneering approach to “Venture Building” helps establish new startups in regional hubs by providing both capital and hands-on operational support.
7. North Star Ventures – Newcastle
Key Sectors & Funding Stages
- Digital technology, advanced manufacturing, and life sciences
- Investment range: £500,000 to £3 million
- Seed to Series A
- Exclusive focus on Northern England
Notable Investments
- Hygen (Newcastle) – Green hydrogen technology
- Datum360 (Teesside) – Engineering data management
- Boiler Plan (Durham) – Energy efficiency platform
2025 Strategy Highlights
North Star has secured £65 million for their new “Northern Innovation Fund” in partnership with regional universities and the Northern Powerhouse Investment Fund. Their 2025 focus includes supporting the green industrial revolution in traditional manufacturing regions.
What makes North Star unique is their exclusive focus on Northern England, with deep connections to local business networks, universities, and public sector organizations. Their team’s regional expertise and commitment to economic transformation in post-industrial areas provides portfolio companies with specialized support for the unique challenges of these markets.
8. Deepbridge Capital – Chester
Key Sectors & Funding Stages
- Life sciences, renewable energy, and technology
- Investment range: £100,000 to £2 million
- Seed and early-stage
- Focus on EIS/SEIS qualifying companies
Notable Investments
- Zilico (Manchester) – Cancer diagnostic technology
- Videregen (Liverpool) – Regenerative medicine
- Chainvine (Manchester) – Blockchain solutions
2025 Strategy Highlights
Deepbridge has launched a new £50 million “Life Sciences Impact Fund” in 2025, focusing on innovations addressing healthcare challenges. Their enhanced sector approach now includes specialized advisors for medtech, cleantech, and digital health verticals.
Deepbridge stands out for their tax-efficient investment approach through EIS and SEIS schemes, making them particularly attractive to angel investors seeking both impact and tax benefits. Their team includes scientists and industry experts who provide technical due diligence and specialized mentoring to portfolio companies.
9. Foresight Group – Nottingham
Key Sectors & Funding Stages
- Infrastructure, renewable energy, and SME private equity
- Investment range: £1 million to £5 million
- Growth capital and replacement capital
- Regional focus on Midlands and Northern England
Notable Investments
- Fertility Focus (Warwickshire) – Fertility monitoring
- Reward Finance (Leeds) – Alternative lending
- Biofortuna (Cheshire) – Diagnostic solutions
2025 Strategy Highlights
Foresight has secured £90 million for their new “Midlands Engine Investment Fund II” in 2025, targeting growth-oriented businesses in the region. Their enhanced ESG approach now includes specific carbon reduction targets for portfolio companies.
Foresight distinguishes itself through their integrated approach to sustainability and regional economic development. Their management of multiple regional funds provides unique insights into local market dynamics, while their expertise in both infrastructure and private equity creates synergistic opportunities for portfolio companies.
10. Calculus Capital – Manchester Office
Key Sectors & Funding Stages
- Technology, healthcare, and creative industries
- Investment range: £2 million to £5 million
- Growth stage with established revenue
- Focus on EIS-qualifying companies
Notable Investments
- Mologic (Bedford) – Diagnostic technologies
- Weedingtech (Bristol) – Sustainable weed control
- CloudTrade (Newcastle) – Document processing
2025 Strategy Highlights
Calculus has established a dedicated £40 million “Northern Growth Fund” in 2025, with a particular focus on Manchester’s growing technology ecosystem. Their new sector approach emphasizes creative industries and media tech businesses in regional hubs.
As the UK’s first EIS fund manager, Calculus brings unparalleled experience in tax-efficient investing to regional markets. Their active board participation approach provides portfolio companies with hands-on strategic guidance, while their extensive network of industry advisors offers specialized expertise across multiple sectors.
2025 Regional Venture Capital Trends
The UK’s regional venture capital landscape is evolving rapidly in 2025, with several key trends reshaping investment patterns outside London. Understanding these developments is crucial for entrepreneurs seeking funding in the current environment.
Emerging VC Hubs
Manchester
Manchester has solidified its position as the UK’s second venture capital hub in 2025, with investment volumes increasing 42% year-on-year. The city’s strengths in fintech, e-commerce, and media technology have attracted specialized investors, with MediaCity UK becoming a particular hotspot for creative tech investments.
Bristol
Bristol’s venture ecosystem has grown dramatically, with a 38% increase in deal volume in 2025. The city’s strengths in deep tech, robotics, and sustainable technology have attracted significant attention, with the Bristol-Bath region now recognized as the UK’s leading cleantech investment hub outside London.
Edinburgh
Edinburgh continues to punch above its weight, with AI and healthtech investments driving a 35% increase in funding in 2025. The city’s unique combination of academic excellence, established tech companies, and supportive infrastructure has created a self-sustaining ecosystem that’s increasingly attractive to international investors.
Government Incentives
The UK government has implemented several initiatives in 2025 to stimulate regional venture capital activity:
| Initiative | Description | Impact |
| Regional Investment Tax Relief | Enhanced tax incentives for investments in designated regional growth zones | 30% increase in angel investment outside London |
| British Business Bank Regional Funds | £1.2 billion allocated to regional investment funds | Co-investment in 200+ regional startups |
| Innovation Accelerator Program | £250 million to develop R&D ecosystems in Glasgow, Manchester, and Birmingham | 42% increase in university spinouts |
| Regional Tech Talent Incentive | Subsidies for tech companies establishing operations in designated regions | 15,000+ new tech jobs created outside London |
Conclusion: The Future of Regional Venture Capital in the UK
The venture capital landscape outside London is more vibrant and diverse than ever before in 2025. With specialized regional funds, government support, and growing entrepreneurial ecosystems across the UK, startups no longer need to relocate to the capital to access quality funding and support.
For entrepreneurs, the rise of these regional venture capital firms represents an unprecedented opportunity to build companies with strong local roots while accessing the capital needed for global ambitions. The firms highlighted in this article are not just providing funding – they’re actively building ecosystems, mentoring founders, and creating the infrastructure needed for sustainable growth.
Looking ahead, we predict further specialization among regional VCs, with more sector-focused funds emerging to support specific industry clusters. The north-south investment gap will continue to narrow as success stories from Manchester, Leeds, and Newcastle attract more capital to these regions. International investors, particularly from the US and Asia, will increasingly look beyond London for UK opportunities, further enriching the regional funding landscape.
The message for founders is clear: in 2025, building your startup outside London is not just viable – it can be advantageous. Lower operating costs, specialized regional support, and increasingly sophisticated investor networks make regional hubs attractive alternatives to the capital. By understanding the landscape of venture capital firms investing outside London, entrepreneurs can make strategic choices about where to base their operations and which investors to approach.
Ready to Approach Regional VCs?
Download our comprehensive guide to securing funding from Top 10 Venture Capital Firms Investing Outside London in 2025. Includes detailed profiles, contact strategies, and pitch templates customized for regional investors.
