TLDR:
Key Points:
- The North of England is £6B underfunded compared to London in terms of private investment
- The Government is called upon to implement tax credit enhancements and track progress to balance out funding allocation
Investing in the ideas of the North: Innovation has no geographical boundaries highlights the stark contrast in private investment between London and other regions of the UK. The article points out that limited VC activity and a lack of startup ecosystem expertise in the North of England hinder the region’s potential for growth. The think tank IPPR’s analysis reveals that the UK faces a funding problem, with England ranking poorly in investment compared to other countries.
Regional investment inequality is identified as a significant issue, with investors often more comfortable conducting business in the South of England where most activity is concentrated. The article emphasizes the need for a more robust investment framework and ecosystem support to facilitate innovation outside of the capital. However, there are positive shifts in investment trends post-COVID, with funds and private angels showing increased interest in regions like Newcastle.
Initiatives like Mercia EIS Funds and Par Equity are highlighted as efforts to rebalance investment away from London and towards the North of England and Scotland. The article also discusses the importance of supporting women-led businesses, citing initiatives like Fund Her North as a step towards addressing diversity and geographical investment disparities. The UK’s Levelling Up policy aims to reduce regional inequalities through infrastructure investment, but questions remain about its impact on historical disparities in funding distribution.
In conclusion, the article calls for a focus on specialized ecosystems in traditionally overlooked areas and a fairer distribution of private investment to unlock the full innovation potential of the UK. It stresses the need for investors to look beyond metropolitan areas like London and explore untapped opportunities in other regions.
