4 Eye-Catching UK Startups from Outside London

It’s no secret that these are bumpy times for tech companies and anyone involved in investment and M&A. But, amid all the less-than-happy headlines about startups downsizing and investors battening down the hatches, there has also been fresh research which is cause for optimism – particularly for UK founders and executives.

As revealed by KPMG’s latest Venture Pulse report, UK businesses attracted $8.6 billion in VC investment during the most recent quarter. While this is down from the $10.2 billion raised in Q1, the total amount for the first half of 2022 has actually exceeded the amount raised in the equivalent period last year, when the macroeconomic and geopolitical conditions were considerably rosier ($18.8 billion vs $17.5 billion). 

Certain sectors in the UK are going great guns. Fintech is one of them, with a standout player being SumUp. The much-talked-about provider of card readers, invoice-creation software and other business services tech enjoyed an eye-catching $624 million funding round in June. Healthtech, biotech and cleantech are also flourishing in the UK, with a major player in the latter sector being Newcleo – the next-generation nuclear startup which raised $315 million in June.

This all serves as a reminder to budding UK entrepreneurs that, market corrections and general caution notwithstanding, there is plenty to feel optimistic about. But there is one sticking point, which is that investment massively favours companies based in London. In fact, over 80% of Q2 investment was claimed by the capital. 

On the one hand, this is understandable. London is after all one of the great tech hubs of the world, attracting international talent, providing a nurturing infrastructure and boasting globally-renowned incubators. But it’s important to also emphasise how
plenty of other UK cities are also yielding game-changing startups. 

Here are just four that have been making strides in their particular sectors. 
 

Manchester is undoubtedly one of the great tech capitals of the UK, for a number of key reasons. One is the availability of local incubator/accelerator programmes such as those offered at Bruntwood SciTech. There’s also the proactive role the University of Manchester plays in commercialising innovations and intellectual properties. Plus, there are rapid and straightforward transport links to London, making it easy to dash back and forth between these two great hubs of innovation. 

One Manchester startup on our radar is Linkup, a social app which actually is social. By which we mean, it encourages users to meet like-minded people in the real world, forge new friendships and, in the words of co-founder Jack Peagam, “go on adventures”. The startup has received backing by YouTube star Calfreezy, and some as-yet unnamed footballers. It’s also recently clocked up around $540,000 in pre-seed funding, and it’ll be fascinating to see whether it really will herald a new generation of truly social social platforms.
 

Late last year, Beauhurst – a data platform that tracks high-growth companies, accelerators and funds – published its ranking of the best UK locations, outside of London, for tech startups. Edinburgh took the top spot, with Beauhurst underscoring the influence of the University of Edinburgh, which has spun out dozens of successful tech firms. The number of high-growth Edinburgh businesses with female founders is also slightly higher than the national average. 

One trailblazing Edinburgh startup is Neurolabs. The company specialises in Synthetic Computer Vision (SCV), a more cost-effective alternative to Computer Vision. This is a field of AI which allows computers to detect and interpret real-world objects. 

SCV trains computer algorithms using rendered, 3D digital twins instead of real-world objects, saving time and money. Neurolabs’ current focus is on retail, deploying its SCV technology to create virtual versions of consumer products to help supermarkets optimise their in-store processes. Neurolabs’ groundbreaking work earnt the startup a $3.5 million seed round earlier this year.
 

Beauhurst has calculated that Leeds has the third-largest population of high-growth companies in the UK, outside of London. The data platform has identified business and professional services as being a particularly soaring sector in the city, while fintech is another growth industry. Indeed, the FinTech North collaborative platform, which showcases innovative startups, is based in Leeds.

One business tech firm that’s attracted interest in recent times is Answer Pay. The company has pioneered a ‘smart way’ to make and receive bill payments, called Request to Pay. This messaging ecosystem allows billers to send payment requests for goods and services directly to customers’ bank account apps. Customers are then empowered to choose how and when they pay. 

It’s intended as a more flexible, customer-focused alternative to rigid Direct Debit payments, boosting customer loyalty in the process. An ideal fit for the cost of living crisis, Answer Pay has received funding from the government’s Department for International Trade, in order to extend Request to Pay connectivity to European countries.
 

At the end of last year, Bristol was named by the government’s Digital Economy Council as one of the top five cities for tech in the UK. The research revealed that the number of tech job opportunities in Bristol had surged by an impressive 50% since the year before. The University of Bristol, the largest independent employer in Bristol, has helped drive much of the growth.

A major Bristolian success story is Zap-Map, which has actually been around for a while now (having been founded in 2014) but is now reaping the benefits of the EV revolution. As well as pointing drivers towards the most convenient charge points through its app, Zap-Map can be used to pay for charging. It also functions as a social network, allowing users to share thoughts and tips on charge points. 

Zap-Map closed a $10.9 million Series A round just weeks ago, potentially allowing the company to expand internationally and consolidate its position in this burgeoning sector.