How NPIF II is skyrocketing the Northern technology agenda

Technology is a cornerstone of the UK’s economic growth and future prosperity. According to a HSBC report, the UK tech industry is now worth over $1.2 trillion and employs more than two million people. This remarkable growth has not only established the UK as Europe’s leading tech ecosystem but also positioned the sector as a vital driver of innovation, investment and long-term national economic resilience.

The North of England has rapidly transformed into a hub for tech businesses in the UK, leading the way in areas such as fintech, cybersecurity and software creation. From the North West, across Yorkshire, and to the North East, businesses are tapping into fantastic talent and highly skilled graduates from prominent universities across the regions, creating a thriving home for innovation and technological advancement.

Both the first NPIF and NPIF II, have championed Northern tech entrepreneurs that are pushing the boundaries of innovation to create a more prosperous Northern economy.

Boosting Northern tech hubs

Cities across the North are rapidly emerging as key hubs for tech growth and innovation. Manchester now leads as the UK’s fastest-growing tech economy outside of London, home to over 10,000 digital and tech companies and contributing £5 billion to the regional digital economy ^{Read footnote text 1} . Manchester’s fintech sector alone adds £1 billion to the national economy, fuelled by rapid advancements in AI, payments, open banking and cybersecurity ^{Read footnote text 2} . Supporting this momentum, NPIF II – Praetura Equity Finance in the North West has played a direct role in accelerating growth. Their PraeSeed programme is run in partnership with leading tech accelerators to unlock growth for tech entrepreneurs in the North West.

Elsewhere, our other fund managers have made investments into companies like Liverpool-based Marko Marketing, which received a £35,000 loan from NPIF II – River Capital & GC Business Finance Smaller Loans. AI is quickly becoming the defining technology of our times, with reports projecting the global AI market will soar 25-fold in just a decade. Marko Marketing is part of this AI-wave, providing an affordable AI-powered marketing platform designed to help small businesses that struggle to access effective marketing tools. 

Job creation for the local economy

The North East is increasingly being recognised as a rising health tech hotspot. Its thriving health tech and life sciences sector already contributes £2.7 billion annually to the UK economy and supports over 15,000 jobs ^{Read footnote text 3} . Newcastle stands out as one of the region’s leading tech hubs, with startups in the city securing £86 million in venture capital funding ^{Read footnote text 4} . Meanwhile, other areas including Middlesbrough, Durham, Sunderland and Northumberland are emerging as promising centres of innovation. The region benefits from one of the highest proportions of STEM students in the UK, a key factor in driving long-term tech sector growth.

Magnitude Biosciences, based in NETPark, helps its clients in the health and nutrition, biotech and pharmaceutical industries in progressing their research projects. Using patented technology, it reduces the need for animal testing, de-risks clinical trials, and helps prioritise successful clinical candidates. The funding from NPIF II - Maven Equity Finance has enabled the business to grow its team from five to 20 people, with plans to eventually become a team of 50, demonstrating the power of investment in unlocking new jobs.

Tapping into university talent

Yorkshire’s tech ecosystem is also gaining significant momentum, attracting £344 million in investment in 2024 alone. University spinouts have played a pivotal role in this growth, emerging as a key driver of innovation. Since 1990, the University of Sheffield has produced more than 50 direct spinouts and nearly 700 startup founders. Sheffield is one of the nation’s leading startup capitals of Britain, cementing its reputation as a leading hub for entrepreneurial talent and tech-driven growth.

One of these Sheffield-based businesses is SCI Semiconductor, which aims to win the race to develop the world’s first ‘memory safe’ computer chip. Using CHERI technology, a framework developed by the University of Cambridge, the SCI’s chips are supported by both the UK and US governments. Securing investment from NPIF II - Mercia Equity Finance, the business is working to resolve the problem of ‘memory safety’ which is the key factor in around 70% of cyber-attacks.

Propelling innovation is a driving force behind NPIF II and the Fund is committed to support entrepreneurs pushing the boundaries of what’s possible with technology. By championing these businesses, the Fund is helping to form new tech hubs across the North, paving the way for more jobs and opportunities.

If you’re an innovative business based in the North and looking to grow, visit the NPIF II website to find out how the Fund can support you.

• ^{Return to footnote location 1}

  https://www.investinmanchester.com/why-manchester/industry-expertise/digital-and-technology/

• ^{Return to footnote location 2}

  https://sifted.eu/articles/manchester-mapped-brnd

• ^{Return to footnote location 3}

  https://www.prolificnorth.co.uk/feature/the-north-east-is-making-strides-in-health-tech-but-disparities-in-funding-and-infrastructure-must-be-addressed/

• ^{Return to footnote location 4}

  https://www.uktech.news/partnership/regional-spotlight-north-east-20230301