REGIONAL START-UP LANDSCAPE REPORT
Our new report explores key barriers to ecosystem growth from the perspective of founders, investors and business support organisations.
We’re thrilled to launch the Regional Start-Up Landscape: Where Next report, commissioned by Manchester Digital Strategy and delivered in partnership with Manchester Digital and Manchester Angels.
Home to a thriving community of over 10,000 tech and digital businesses, Manchester’s tech sector plays a vital role in driving regional economic growth and innovation. Widely recognised as one of the fastest growing tech hubs in the UK, the city’s start-up ecosystem is instrumental in strengthening Manchester’s reputation as a key figure in the worldwide digital economy, pioneering new applications for emerging technologies and attracting talent and investment from across the globe.
Bringing together perspectives from founders, investors and business support functions across Manchester’s tech and digital sectors, our Regional Start-Up Landscape Report offers insights into existing challenges and gaps in the start-up ecosystem to identify barriers for growth and build recommendations for future action.
Sherelle Fairweather, Digital Strategy Lead at Manchester City Council, said: “Manchester’s development and investment into innovation communities and start-ups is inspiring transformative ideas and solutions, bringing enormous benefits to everyone in our city and beyond. To help us all better understand the support that our diverse start-ups and scale-ups need to flourish, the Regional Start-Up Landscape Report provides data-informed insights into the current challenges and opportunities shaping the sector. By working closely with founders, investors, and business support networks, we aim to champion collaborative approaches that strengthen the ecosystem — ensuring that start-ups from all backgrounds, particularly those underrepresented, have the opportunity to grow, scale, and thrive, not only in Manchester but on a global stage too."
Katie Gallagher OBE, Managing Director of Manchester Digital, said: “This new report demonstrates the strength and innovation within our startup ecosystem, but it also highlights the work still to be done to ensure every founder and startup has the opportunity to succeed. We’re proud to have worked with the council and industry partners to help shape a roadmap for a stronger, more diverse startup sector, which attracts further investment, creates jobs and shines a spotlight onto Manchester within the global stage.”
David Levine, CEO of Glenluna Ventures and Principal at Manchester Angels, said: “You cannot improve what you cannot measure. For the first time, this report looks at what is working and not yet working in the Manchester tech ecosystem by examining the state of play through a wide range of different stakeholders. By talking to founders, investors and service providers in different sub-sectors and investment stages, this report shines a light on the progress made but also the work still to be done.”
The report highlights research findings informed by a wide range of stakeholders:
Founder Perspectives
While a wide range of accessible support initiatives are well-used by founders in Manchester – with 74% of start-ups surveyed engaging with accelerator, incubator and business support programmes – this does not always translate into funding. Challenges faced by founders include geographic investment imbalances, cuts to R&D tax credits, a lack of role models and mentors with start-up experience, and limited access to investment networks.Investor Perspectives
The views of founders and investors regarding investment challenges can diverge significantly. Although investors echo founders agree on the importance of networks – with 100% surveyed investors sourcing deals through their own connections – perspectives vary in identifying other barriers to early-stage investment. Key challenges cited by investors include traction, market sizing, cap table issues, unrealistic valuations and widespread misunderstanding of investor dynamics.Business Support Perspectives
Business support programmes highlighted gaps in support provision, including better understanding of funding options for SMEs, greater access to high-risk seed funding and a lack of practical support for bootstrapped founders.Recommendations for Strengthening the Ecosystem
Insights highlight the need for greater alignment between the different stakeholders within the regional start-up ecosystem. Recommendations focus on practical actions that could improve cohesion, education and signposting to enable a broader range of businesses to flourish in Manchester.