Unlocking access
to ecosystems
A deep dive of the UK's dynamic ecosystem clusters
December 2023


Executive
summary
London boroughs continue to be a top
destination for high-growth businesses
in the UK, and encouragingly other
large cities, such as Edinburgh and
Manchester also boast budding high
growth clusters, attracting firms
and investment.
Since 2013 the number of high-growth companies
(defined on page 29) in the UK has increased by 85.3%,
reaching a total of 48,000 in 2023. High-growth
companies in London’s local authorities account for
a combined 31% of high-growth companies within
the UK. This is naturally related to London’s large
population, investor networks and range of existing
business types. Edinburgh (1.44%) and Leeds (1.43%)
are the cities outside of London with the highest
proportion of high-growth businesses. Edinburgh,
alongside other Scottish cities, benefits strongly
from governmental support, through their
Enterprise agencies. Leeds is emerging as a new UK
tech hub, making it an attractive destination for
high-growth businesses.
Between 2013 and H1 2023, UK companies received
£141b in equity funding via 63,000 deals. Companies
in Westminster secured the most equity investment
during the period, receiving 13.2% of the total value
and accounting for 9.54% of all deals, nationally. Equity
investment naturally flows into local authorities, in
addition to a large number of businesses, as well as
those that host innovative, fast-growing businesses.
Westminster-based companies have access to
high-quality talent produced by world-class
universities and are close to London’s global financial
and political centres.
Companies located in Westminster received the
highest amount of grant funding, as 3.57% of the
total grant value provided in the evaluated period
was awarded to businesses in this borough. Cities
associated with world-class research universities, such
as Edinburgh and Cambridge emerged when looking at
grant funding, as these authorities are often locations
that produce spinouts and younger-stage companies.
Companies in Edinburgh were awarded 3.05% of the
total value of grant funding, with Cambridge having
been awarded 2.72%. Companies in Edinburgh may
also benefit from the fact that Scottish Enterprise is
such a prolific grant funder in the UK.
Page 1
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Introduction
to the high-
growth ecosystem
This report identifies high-growth businesses and
highlights their various support nodes across the
nation. A business is defined as high-growth if it has
met one of Beauhurst’s eight tracking triggers (listed
on page 29). These include a company securing
equity investment, spinning out of a university, or
receiving an innovation grant. These characteristics
often serve as strong indicators of a company’s
growth potential and trajectory.
However, several external factors can contribute
to the success of high-growth businesses. With
each company being unique in its make-up,
successful local authorities are those that provide
a range of support offerings. These can range from
accelerators, which offer mentorship and resources
to early-stage businesses, up to promotion of the
availability of grant funding and facilitation of access
to local, regional, and devolved support such as that
available through Innovate UK, Scottish Enterprise,
InvestNI and Growth hubs.
In February 2022, the UK government released the
Levelling Up white paper, which suggests ways in
which growth opportunities within the UK can be even
spread, via targeted investment in local authorities
across the country. This will work alongside the UK
Innovation Strategy. Released in July 2021, this
strategy aims to establish the UK as a global innovation
hub by 2035. The proposition centres around
promoting business innovation, attracting top talent,
aligning institutions with the needs of businesses as
well as regions and enhancing the country’s capabilities
in critical technology domains. This is designed to
ensure the UK maintains its competitive position
across the globe in future.
Page 2
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
There are currently 48,000 active, high-growth companies in the UK at different
stages of their lifecycles. Each company navigates the landscape of entrepreneurship
with unique strategies and challenges. Resourceful, bootstrapped companies
often launch with limited starting capital and rely heavily on their ability to generate
customer traction and market opportunities. Meanwhile, equity-backed companies
and Intellectual Property (IP)-rich spinouts often seek multiple fundraising rounds to
develop their solutions and accelerate growth. The following lifecycles are illustrative
examples and, as such, companies may progress via additional or different stages.
Company lifecycles
Page 3
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About

Page 4
Bootstrapped companies
The lifecycle of a bootstrapped company
A bootstrapped company is one that has been started by an entrepreneur with
little capital, often relying on their own personal finances or the revenue the
company generates. Bootstrapped companies typically operate with little or no
external capital or funding.
Incorporation
The founders formally establish
the company, often with limited
initial capital, relying on personal
savings or funds borrowed from
friends and family.
Scaling
If profitable, the
company may begin
to expand, reinvesting
its profits into its
growth strategy.
Exit or continued growth
The founders continue to grow
the company independently or
explore exit opportunities such
as an acquisition or Initial Public
Offering (IPO).
Product development
The company focuses on
developing its product or service
and building up a customer base. It
will be reliant on revenue or small
loans for funding.
Acquisition
As part of the company’s
growth strategy, it may
choose to make strategic
acquisitions to accelerate
its growth.
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About

Spinout companies
The lifecycle of a university spinout
A university spinout is a company set up to exploit intellectual property that has
been developed by a university. The university must own the IP it has licenced and
own shares in the company, with the option to purchase shares at a later date to
be defined as a spinout. Spinout companies can progress through several different
lifecycles and the cycle below highlights a common trajectory.
Page 5
Technology development
The company is founded based
on university research or
intellectual property, typically
with the support of university
resources and expertise.
Grant funding
The company may apply for, and
receive, innovation grant funding
from government agencies or
private organisations to support its
research and development activities.
Scaling and additional funding
With a proven product and
market fit, the company seeks
additional funding through
later-stage funding rounds to
scale and expand its operations.
Spinning out
With help from the origin
university’s technology transfer
office, the company formally
spins out, with initial funding
coming from the university.
Seed funding
The company secures
its seed round from
venture capital firms or
angel investors.
Exit
Founders and investors
may exit via an Initial Public
Offering or acquisition.
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About

Equity-backed companies
The lifecycle of an equity-backed company
Equity backed companies are those that have issued and sold news shares to fund
their growth. Through the sale of new shares, the business is selling ownership in its
company and receiving cash in return. Beauhurst only views the issuance and sale of
new shares as equity investment.
Incorporation
The company is founded
and may secure initial
investment from friends,
family, and the founders to
kickstart operations.
Seed funding
To finance the company’s market
research, product development
and hiring its initial employees,
it may raise capital from angel
investors or venture capital firms.
Acquisitions
The company may utilise
its previous funding
rounds to explore strategic
mergers or acquisitions to
accelerate its growth.
Accelerator attendance
The founders may attend an
accelerator or incubator programme
to expand their networks in the sector,
meet potential investors, and further
develop their commercial acumen.
Further funding and expansion
Additional funding rounds
may be required to support
global expansion, entry into
new markets and to solidify its
market position
Page 6
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Exit
Founders and investors
may exit via an Initial Public
Offering or acquisition.

Scaleup companies
The lifecycle of a scaleup company
A scaleup company refers to a business that has seen at least 10% annualised
average growth in turnover and/or headcount over the past three accounting years.
Incorporation
The company is established
with initial funding from
the founders’ savings or
borrowed money from
friends and family.
Initial traction
The company gains
its first customers
and experiences early
revenue growth driven
by a small team.
Management buyout (MBO) /
management buy-in (MBI) or
succession transaction
Recognising the need for a
strategic shift or change of
control, the company’s management
team may lead an MBO, buying
out existing shareholders and
gaining more control over the
company’s direction.
Product development
The company focuses on
developing its products
and / or services by
conducting market research
to identify target customers.
Scaling up
The company
consistently grows over
multiple years, achieving
scaleup status.
Page 7
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Within the UK’s high-growth ecosystem, several components play pivotal roles
in facilitating growth and innovation. Universities provide resources, assistance
in commercialising IP and support to new entrepreneurs, while accelerators and
incubators offer intensive support to early-stage startups.
Investors, from private equity and venture capital firms to angel investors and
crowdfunding platforms, provide the necessary capital to support the continued
development of these companies, whilst also offering commercial expertise. Finally,
government support such as grant funding and initiatives including Innovate UK,
Growth Hubs, Combined Authorities and devolved enterprise agencies support
economic development and form comprehensive support networks for entrepreneurs.
Ecosystem components
Page 8
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Introduction to
support nodes
Startups, scaleups and small businesses play a
significant role in the UK economy via job creation
and innovative products and services. Therefore,
supporting these businesses at different stages of
their lifecycles is important for local and national
economic growth. By utilising support programmes,
businesses can increase their likelihood of survival
and growth through the challenging early stages.
This support can take on varying forms, including
financial assistance and access to resources such as
mentorship, training, and networking opportunities.
Governmental bodies, the private sector, universities
or local authorities often advertise the support
available and their associated requirements. Support
mechanisms are invaluable to entrepreneurs and can
be provided free of charge, for a fee or in exchange
for equity. This section of the report examines some
support mechanisms within the UK’s ecosystem.
Page 9
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Universities
Outside of their focus on education and research,
universities and other academic institutions aid
in innovation and economic growth by offering
resources to businesses. It is estimated that UK
universities will provide over £11.6b in support
and services to small enterprises, businesses, and
not-for-profit organisations over a five-year
period (2021–2026).1

Spinout companies have strong connections
to universities and many UK universities have
established entrepreneur centres to provide support
to businesses. These centres frequently promote
events and resources tailored to a variety of business
growth cycles. Universities play an important role in
nurturing the ecosystem. By providing support to
businesses and encouraging innovation, universities
can aid in the development of the surrounding area /
community they are based in.

Academic spinouts are companies that originate
from within a UK university or higher education

institution. Typically, the university or a connected
venture fund will provide the business with seed
capital in exchange for equity. Spinout founders are
often post-graduate students, research associates,
or other academics from the university. Dominant
spinout sectors within the UK include pharmaceuticals,
research tools and reagents, medical devices as well as
software-as-a-service (SaaS).

Collaboration with universities can offer businesses
access to expertise, talented individuals, cutting-
edge equipment, and research facilities. Universities
also offer high-quality office and lab spaces that
can be leased by businesses at competitive rates.
Academic incubators are held by universities and offer
early-stage businesses valuable resources. These
programmes are advantageous to entrepreneurs and
can provide much-needed exposure to investors as
well as academic resources.

Knowledge Transfer Partnerships (KTP) are grant-
funded UK schemes in which businesses, graduates
and universities liaise with the shared target of
innovation. The scheme involves a graduate or
postgraduate working within the business to embed
expertise and encourage innovation. Participating
in KTPs not only grants businesses access to
government funding but also introduces new talent
into their workforce. By engaging in KTPs, businesses
can effectively distribute the risks associated with
undertaking innovative opportunities.
It is important to note that some businesses also
benefit from non-university institutions such as The
Francis Crick Institute and the Royal Society. For
example, the Royal Society of Chemistry offers grants
and funding opportunities for researchers and early-
stage businesses, to aid in growth and innovation.
Page 10
1 Universities and the UK's economic recovery: an analysis of future impact
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Accelerators and
incubators
Business accelerators are intensive programmes
that provide early-stage business support through
mentorship, access to investors, and other
valuable resources. Some accelerator programmes
are offered for free. However, the provision of
resources,provision of resources, which may also
include funding, is often provided for a fee or given
in exchange for equity in the participating business.
Accelerators are funded by venture capital investors,
governments, public bodies or large corporations.
Examples of accelerator providers within the UK are
Techstars, Founder Institute, and Founders Factory.
These programmes are tailored towards businesses
with the intention of ‘accelerating’ growth in a
relatively short period. The programme duration
can vary but is conventionally between three to
six months. Once admitted, businesses undergo
a formal curriculum involving seminars and
workshops. To conclude the experience, accelerators
hold “demo days” in which participating businesses can
showcase their product and / or service to investors
and industry professionals. This exposure can lead to
other opportunities such as additional funding offers.
To be suitable for an accelerator, a business is usually
required to have a minimum viable product (MVP) and
an accompanying validated business model.
Business incubators differ from accelerator
programmes as they aim to “incubate” early-stage
businesses and aid in the establishment of longer-
term business concepts before entering the market.
As such, these programmes can span a longer duration
of several years and do not require a defined MVP.
Incubators often work with entrepreneurs to develop
suitable ideas for future launches. Resources offered
include collaborative workspaces, training, and
networking opportunities with investors. Incubators
can be established by economic development
organisations or academic institutions. These support
programmes do not involve equity financing and are
usually not-for-profit, unlike accelerators.
To be accepted on accelerator or incubator
programmes, businesses must undergo an
application process. Applicants may be required
to define and outline their business plan and pitch.
This is conventionally followed by an interview or
demonstration stage. The admission to accelerators
is usually cyclical, whilst incubators have rolling
admissions. Accelerators and incubators are widely
available to startups and may be focused on a specific
industry, such as climate technology.
Due to the competitive and advantageous nature
of these two programmes, receipt of a position in
either can provide validation and credibility within
the industry. Exposure to investors can also provide
much-needed capital to early-stage businesses. The
knowledge transfer encouraged by both types of
programmes is invaluable to entrepreneurs and can
help to prevent costly common organisational and
financial challenges. Throughout these programmes,
businesses are surrounded by other like-minded
individuals, enabling collaboration, problem-solving,
and peer-to-peer learning.
Page 11
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Investors
Angel Investors / networks
Angel investors are individuals, often successful
entrepreneurs or high-net-worth individuals, who
invest in startups in exchange for equity ownership.
Angel investor networks are groups of angels who
collaborate and consolidate resources as well as
expertise. These networks can provide startups with
access to a broader range of potential investors and
a wealth of knowledge. Angel investing is often the
first source of capital for early-stage businesses.
Investing as an angel involves a high level of risk
when compared to institutional investing and
early-stage venture capital. Angel investment is
advantageous to businesses as angels can provide
guidance and direct access to networks, which can
help increase a company's chances of success during
the early stages of growth.
Crowdfunding
Crowdfunding is a funding method where
entrepreneurs and businesses raise funds by selling
small equity stakes to numerous investors, often
via online platforms. Examples of these platforms
include Crowdcube and Seedrs. Crowdfunding can
expose entrepreneurs to a diverse pool of potential
investors who support their business or project. The
investors involved typically contribute small amounts
of capital, collectively forming a significant source of
funding. Crowdfunding can allow entrepreneurs to
validate and refine concepts while generating early
stage interest and support.

Crowdfunding services act as an alternative financing
option that can fund activities such as product
development, marketing, or expansion. This method
of funding can also help businesses retain control over
their projects and operations.
Private equity and venture capital
Private equity (PE) and venture capital (VC) are forms of
financing where capital is invested into a business. PE
firms typically invest into more established companies,
intending to facilitate growth or profitability in
exchange for a significant ownership stake in the
business. VC focuses on startups and early-stage
businesses with high-growth potential. Venture
capitalists also provide capital in exchange for equity.
This investment approach often involves more risk
than private equity investment due to the early stage
of the business' growth and unproven success. Both
PE and VC can be important sources of funding for
businesses at different stages of development, but
vary in their target businesses and available funding
amounts.
Corporate venture capital
Corporate venture capital (CVC) is a subset of VC
involving the investment of corporate funds into
startups or other growing businesses. CVCs provide
investment in exchange for equity stakes in a business.
Receipt of this funding can allow businesses access
to industry expertise, partnerships, and acquisitions
by the corporate investor. CVC is a type of strategic
investing that can help the corporate and its portfolio
companies to improve their competitivene nature.
University funds
University captive funds are pooled investment funds
owned by universities and the associated specialist
investment teams. These funds are used to invest in
startups, as well as early-stage businesses associated
with the university.
Page 12
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Grant funding
Grants are a form of financial support for businesses
offered by government agencies or private
organisations. They are intended to support
projects, innovation, or operations. This type of
funding is non-repayable and can provide businesses
with a significant source of financial assistance
for various purposes, including research and
development. Grant funding is accessible to a wide
range of industries and can be provided in different
forms, such as direct grants, vouchers, or access
to resources.

Direct grants can be either full fund provision or
match funding. With match funding, the receiving
business needs to contribute a portion of the total
funding, in order to access the grant. Both funding
mechanisms can reduce the financial burden
and risks associated with innovation for small
and medium-sized enterprises (SMEs) as well as
entrepreneurs. Typically, governments and local
authorities promote their available grants.

Government grants are funded by governmental
bodies and are often aligned with policy objectives and
economic development. Research shows that grant
funding positively impacts job creation and economic
stimulation. Non-departmental public bodies, such as
Innovate UK, also provide grant funding for businesses
that meet certain eligibility criteria. Innovate UK not
only offers financial support, but alongside it, access to
expertise through its Innovate UK Edge and Catapult
services, and specialist international support and
facilities to aid the development of innovative
products and services. Their funding range for eligible
UK SME businesses is between £25k to £10m.2
Grant giving entities like Innovate UK often provide
wraparound business support to accompany funding to
further enable businesses to overcome other barriers
to growth.

The receipt of grant funding can be valuable to a
business as it can increase its reputation and credibility
within the industry. Obtaining a prestigious grant
often increases the likelihood of the business securing
additional grants in future.
Unlike equity finance, grants do not require new shares
to be issued, allowing founders to retain their existing
equity stake in the company. Grants can provide crucial
cash flow for businesses, which is especially important
for early-stage companies, that often struggle due
to cash flow challenges. An injection of capital into
the business can allow for growth opportunities and
business expansion.

As this type of funding is highly advantageous, it
is an extremely competitive field. To be awarded
grant funding, businesses must conventionally
undergo a detailed application process and meet
specific eligibility criteria, stipulated by the funding
body. The process may involve the production of
proposals, evidence, and financial forecasts. Eligibility
requirements could include factors like operating
within a certain geographical area or industry sector.
Additionally, grants might have the sole intended use
outlined by the provider, limiting their applicability
across other aspects of a business. Due to the time-
intensive nature of the application process, many
businesses may outsource their applications to
consulting firms.
Page 13
2 UK Research and Innovation | Who we fund
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Local government
Local Enterprise Partnerships (LEPs)
Local Enterprise Partnerships, often called LEPs,
are partnerships between local businesses and local
authorities. In England, there are 38 LEPs across
48 specific geographical enterprise zones. These
partnerships aim to support economic growth and
job creation in their respective local areas. This
is achieved through collaboration involving the
public sector, local businesses, and other important
stakeholders. Specifically, LEPs work to allocate and
secure funding from sources such as governments,
private investment and international bodies.
The structure of LEPs can vary but their overarching
aim will generally remain the same. LEPs are
responsible for implementing strategies that result
in economic growth, strengthen the business
environment, and/or attract investment. LEPs often
tailor their strategies to support specific sectors or
industries within their local areas.
However, it is important to note that from April 2024,
the government will no longer sponsor or fund LEPs.
Instead, the functions currently performed by LEPs will
be transferred to local and combined authorities.
Growth Hubs
Growth Hubs are valuable local initiatives driven by
partnerships between the private sector and LEPs.
They aim to provide comprehensive assistance to
businesses looking to expand and develop. This
support encompasses a wide range of services,
including aid in crafting business plans, facilitating
access to funding, and participation in specialised
programs. Growth Hubs promote collaboration by
offering opportunities like peer-to-peer interactions
and sector-specific networking. The services offered
are normally free of charge or at a low cost to the
receiving businesses.
Across England, every region is associated with a
Growth Hub, either operating independently or as
part of a broader regional coalition, like the Northern
Powerhouse covering the North of England. They
often liaise with central government departments and
agencies such as the Department for Business and
Trade (DBT), the Department for Science, Innovation
and Technology (DSIT), and Innovate UK to promote
and implement policies, programs, and campaigns.
Devolved Nations
In Wales, Scotland, and Northern Ireland, the devolved
Governments have established enterprise agencies
responsible for promoting investment and growth
within the local and regional business environments.
These enterprise agencies, such as Scottish Enterprise
and InvestNI, offer forms of assistance, both financial
and non-financial, to support businesses. For example,
Business Wales offers complimentary, expert guidance
to entrepreneurs and businesses. Its services span
across a wide spectrum, encompassing business
planning and strategies for marketing and branding.
Page 14
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About

Page 15
UK Tech Cluster Group
The UK Tech Cluster Group (UKTCG) brings together grassroots organisations,
supporting regional digital ecosystems to thrive. Our mission is to foster tech sector
growth, supporting digital innovation and strengthening our economies.

New digital technologies have the potential to drive business creation, increase
productivity and promote social and economic inclusion for citizens. We support our
local and regional digital ecosystems across four priority areas:
• Start-Up and Scale-Up Tech Businesses – enabling the creation of more
digital businesses within our clusters and supporting our companies on their
growth journey.
• Skills – working in partnership with businesses, schools, colleges, universities and
other institutions to grow the digital skills base at all levels across our ecosystems.
• Innovation in Technology – harnessing R&D and business growth by ensuring
digital tech assets and new and emerging technologies drive productivity in key
sectors within our clusters.
• Digital Adoption – ensuring businesses across our regional economies are
supported to absorb and benefit from digital technologies.
Katie Gallagher
Chair of the UK Tech Cluster Group
ScaleUp Institute
The ScaleUp Institute is focussed on making sure the UK is not only the best place to
start, but also to scale a business. We work across ecosystems, sectors and geographies,
both in the UK and internationally, analysing how we’re progressing our scaleup economy
- working closely at national, regional and local levels, with private, education and public
sector entities, to build local scaleup ecosystems to address local scale up challenges.
We share good practice and learnings across the UK and the globe, through our Driving
Economic Development course, case studies and wider regional initiatives.
We know from our deep research that the key drivers of local scaleup growth are access
to skilled talent; fostering of clusters and hubs; and local access to growth capital.
This report shines a further light on how our local clusters are developing in the Tech
sector. The key now is how we continue to lean in locally to the needs of these high
potential growth firms to smooth their scaling journey.
Connectivity between universities, business schools and scaling firms is vital, along with
harnessing private and public sector support towards them, such as tailored growth and
international oriented programmes; Innovate UK services; growth hubs, and investment
zones. These ingredients, coupled with the work currently underway to build out and
develop UK growth capital options are critical if we’re to ensure our UK businesses can
start, grow, scale and stay here.
Irene Graham OBE
CEO of the ScaleUp Institute
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
London boroughs feature heavily amongst the top-ranked local authorities
for several metrics, from equity and grant funding up to active spinout
populations, which is naturally related to the areas’ high concentration of
businesses. Similarly, many of the UK’s growing tech hubs, such as Edinburgh,
Manchester and Cambridge, feature prominently when considering funding
metrics, due to their robust networks of resources, opportunities and talent.
Overview of
local authorities
Page 16
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Map of company
population
Within the UK, there is a clear concentration of
companies in London. There are 165k companies
based in the London Borough of Camden
specifically, the highest proportion of any local
authority in the UK (3.17%). Part of Camden’s
specific attractive nature can be attributed to its
connectivity via rail links and proximity to major
financial and political centres.
The top local authorities outside of London by
company population include some of the larger UK
cities, such as Birmingham (1.83%), Manchester
(1.20%), Leeds (1.13%) and Edinburgh (1.12%). The
allure of these areas to entrepreneurs can be, in
part, attributed to their growing reputations as
tech hubs in the UK and subsequently the networks
associated with this status - such as the potential
for collaboration, skilled talent pools and specialised
facilities in the areas.
Page 17
Distribution of the total company population in the UK by local authority (September 2023)
1
30,000
The location of the company has been determined utilising the head office address.
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Map of high-
growth company
population
Westminster is the most populous authority in terms
of high-growth companies. It may attract this level of
interest, due to the high-concentration of world-class
universities in the area. Proximity to these institutions
provides businesses with access to the highly skilled
talent pools that these universities produce, as well
as access to their specialised facilities.
Despite having a population of just over 500k people,
Edinburgh ranks 8th in the UK for high-growth business
population, likely due to its position as a national
tech hub. This can be attributed to the presence of
its world-class research institutions and the support
of government initiatives such as the Edinburgh
and South East Scotland City Region Deal, which
has allocated £751m to research, development and
innovation within the region.
Page 18
Distribution of the high-growth company population in the UK by local authority (September 2023)
1
500
The location of the company has been determined utilising the head office address.
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Regional map
of accelerators
London is the top location for accelerator
programmes in the UK, with 150 (59.8%) programmes
based in the capital as of September 2023. This
is reflective of London’s thriving ecosystem and
collaborative environment, which is further supported
by its co-working spaces, networking opportunities,
and diverse talent pool.

Outside of London, Scotland is the next biggest
region for hosting programmes, with 25 accelerators
based there. Meanwhile, regions such as Yorkshire
and The Humber, East Midlands (2) and Northern
Ireland (1) have significantly fewer accelerator
programmes. This may suggest that these regions
outside of the UK’s established hubs in the high-
growth ecosystem lack some of the necessary
infrastructure, to support local entrepreneurs and
early-stage businesses. However, it is important to
note that there are other nodes of support and only
accelerators have been mapped.
Page 19
Distribution of accelerator headquarters by local authority (September 2023)
25
6
1
2
11
7
5
10
1
21
150
12
1
50
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Accelerator spotlight:
Grow London Global
Established as the Mayor's International Business Programme in 2016 and launched
by London & Partners; in 2023 it entered its eighth year of operation and has
rebranded as Grow London Global. Endorsed in 2017 by the Scale Up Insitute (SUI)
for its impact, it focuses on London-based scaleups who are looking to expand
their operations internationally. To be eligible for this programme, firms need to
employ between 10 to 249 workers and generate at least £1m in revenue, annually.
If a business is selected to join the 12-month program, it will receive tailored
guidance and support to help aid it with international expansion. The program has
many successful alumni, including prominent digital banks Starling, Monzo and
Revolut, as well as online florists Bloom & Wild, and Checkout.com— all hailing from
established companies.
Accelerator spotlight:
Unlocking Ambition
The Unlocking Ambition (UA) Challenge was launched by the Scottish First
Minister and then implemented by Scottish Enterprise. Entrepreneurs across
Scotland are selected based on their innovative ideas and their potential to impact
the environment, economy, and overall society. UA provides support to both
startup pioneers and high-growth potential businesses, with a primary focus on
those capable of playing a pivotal role in Scotland's Net Zero commitment. The
programme includes an accredited module in partnership with Babson College
based in the US, alongside sessions led by global industry leaders hailing from
established companies such as Apple, LinkedIn, and Netflix.
Page 20
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Accelerator spotlight:
Creative Enterprise:
Evolve
Creative Enterprise Evolve is designed to help screen-based companies who
are seeking investment for business growth. Evolve is designed by investors in
partnership with the British Film Institute and the UK Business Angel Association.
It's intended to prepare and challenge businesses before potential investment
rounds. The programme is for small businesses outside of London that work in
“moving images” for storytelling purposes - encompassing different media types,
including film, television, gaming, and technology.
Accelerator spotlight:
Barclays Black Founder
Accelerator
In collaboration with social enterprise Foundervine, Barclays Eagle Labs has
developed the Black Founders Accelerator programme. This programme is
designed to foster diversity in entrepreneurship and promote Black Founder-led
businesses. Businesses are eligible to apply if they use digital technology as part
of their company operations and are ready to scale. Alongside this, the company
must have at least one founder who self-identifies as Black or of Black heritage at
C-suite level and above. Included in the programme are 12 broad masterclasses,
ranging from hiring talent to understanding intellectual property. The accelerator
also provides access to networking events and dedicated Barclays mentors.
Page 21
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Active spinout
population by
local authorities
Unsurprisingly, Oxford (6%) and Cambridge (3.84%)
rank highly among the top local authorities by active
spinout population, with their respective universities
being the top producers of spinouts each year.
Alongside these top university cities, our list
includes other large UK cities that are often home
to multiple universities. This includes cities such as
Birmingham and Glasgow, which host five and six
universities respectively.
Ranking just outside of the top 12, Vale of White Horse
has 24 active spinouts operating within its jurisdiction
despite being responsible for producing just one.
With its proximity to the city of Oxford, Vale of White
Horse is in a prime location for businesses to attract
talent, whilst removing some of the space constraints
businesses may face being based in the city.



Vale of White Horse is also home to the Science Vale
UK, whose facilities are likely an attractive feature for
research-intensive spinouts.
Page 22
Top local authorities by active spinout population (September 2023)
Oxford
Cambridge
South Cambridgeshire
City of Edinburgh
Camden
Glasgow City
Cornwall
Manchester
Belfast
Westminster
Bristol
Birmingham
She�eld
49
44
56
76
49
43
43
41
35
29
38
35
29
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Spinouts created
by local authorities
Spinout companies are the result of the
commercialisation of university research or
intellectual property. This explains why local
authorities such as Oxford, Cambridge, and
Westminster rank so highly, since they host world-
class research institutions. These institutions have
produced companies such as Osler Diagnostics,
a biotechnology company that spun out of the
University of Oxford in 2016. The company develops
a portable diagnostic device that can test for a
range of disease biomarkers. The Oxford-based
firm has now raised £144m in equity investment via
five fundraising rounds and has also been awarded
£2.12m in grant funding.
The presence of all the local authorities in this list
can likely be attributed to the universities that are
located there. For example, Charnwood is home to
Loughborough University and Manchester hosts five
universities, which would have contributed to its high
ranking status among UK local authorities. Spinouts
are likely to emerge from universities with a strong
research focus since these institutions are more likely
to produce intellectual property that has the potential
to become commercialised.
Page 23
Top local authorities by number of spinouts created (September 2023)
Westminster
Camden
Cambridge
Oxford
Edinburgh
Manchester
Glasgow City
Bristol
Coventry
Charnwood
Birmingham
Belfast
148
94
206
209
95
84
82
76
55
53
56
53
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Investor
headquarters by
local authorities
By looking at the top local authorities for investor
headquarters, we can identify the sources of equity
fundraising rather than the destination. Westminster
is home to more than three times as many investor
headquarters (283) as the next highest-ranking UK
local authority. The reason for this is likely linked
to the fact that Westminster, as a local authority,
is home to the highest population of high-growth
companies in the UK. Investors may choose to
locate here to be close to these companies, to build
relationships with them and to better understand
these businesses. Westminster has good transport
connections linking it to the rest of London and
across the UK. It also sits within London’s political
and regulatory hub. All London boroughs benefit
from the fact that London is a global financial hub,
which attracts foreign investment that can benefit
domestic firms.


One perhaps surprising authority on this list is
Glasgow. Glasgow appears to be a growing tech
hub, which could be one of the reasons investors
are attracted to the area. It has recently created
three innovation districts, each of which has been
designed to garner entrepreneurship and also provide
accelerator programmes to support innovation.
Investors may see the potential for high-growth tech
firms to emerge from these innovation districts and

so may wish to establish themselves there to take
advantage of this in the future. The city is also
delivering the Glasgow Business Growth Programme,
which is funded by the UK Shared Prosperity Fund.
The aim of this is to provide businesses with access to
consultancy support to facilitate growth. Support of
this kind will help grow Glasgow’s business ecosystem
thrive and may encourage firms from outside of the
city to relocate there in the future.
Page 24
Top local authorities for number of investor headquarters (September 2023)
Westminster
Glasgow
Camden
City of London
Islington
Edinburgh
Kensington and Chelsea
Southwark
Manchester
Tower Hamlets
Leeds
Hackney
Swindon
59
40
85
283
42
32
20
19
13
12
18
13
12
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Number of
investment deals
by local authorities
The same five local authorities appear at the top
of the equity fundraising metrics, both in terms of
the amount raised and number of deals completed
(Westminster, City of London, Camden, Hackney,
and Islington). Naturally, this is related to the high
number of companies based in these areas and the
accessibility of local investors.
Some local authorities have also received large
portions of their equity investment from a single
fundraising. In 2022, Hackney-based online
payments solutions firm Checkout.com, raised
£730m in one equity finance deal, which contributed
to 35.8% of Hackney’s 2022 total and 9.39% of the
borough's investment since 2013.
Companies in South Cambridgeshire and Oxford are
also attracting large amounts of equity investment
through relatively few investments. For example, South
Cambridgeshire saw £4.41b worth of investment
between 2013 and 2022, marginally more than
Southwark, but did so with 1,000 fewer deals. This may
be due to the significant number of spinouts in the area,
which will benefit from the cutting-edge intellectual
property they have developed or will be developing.
Page 25
Top local authorities by number of equity fundraisings secured (2013–H1 2023)
Westminster
Hackney
Camden
City of London
Islington
Southwark
Tower Hamlets
City of Edinburgh
Manchester
Hammersmith and Fulham
Kensington and Chelsea
Lambeth
3,509
3,043
4,098
6,035
3,246
1,859
1,851
1,484
1,127
935
1,164
980
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Investment value
by local authorities
Since 2013, Westminster-based companies
have received the highest proportion of equity
investment among UK local authorities, securing
13.2% of all equity funding in the UK, followed
closely by those in the City of London at 12.3%.
Westminster-based provider of digital asset custody
and portfolio management software, Copper, raised
£191m in equity investment in 2022.

Various factors contribute to the large volumes of
equity investment in London-based companies.
This includes but is not limited to, readily accessible
human capital due to its large population and
talent from its many universities. London is also a
top location for investor headquarters, meaning
companies within its boroughs are close to investors,
which may help boost their investment prospects.
Other notable local authorities include South
Cambridgeshire (3.12%), Manchester (2.52%) and
Oxford (2.42%). The reason these authorities may
gain higher levels of equity investment may be due to
both their high spinout populations and their wider
high-growth company populations, which naturally
make them attractive investment opportunities. Tech
companies have been popular investments over the
past decade since companies within this industry
often perform well, are innovative and can provide top
returns on investment.
Page 26
Top local authorities by total value of equity fundraising secured (2013–H1 2023)
Westminster
Hackney
Camden
City of London
Islington
Tower Hamlets
Hammersmith and Fulham
South Cambridgeshire
Southwark
Manchester
Oxford
Lambeth
£11.0b
£7.71b
£17.4b
£18.6b
£7.78b
£7.18b
£4.74b
£4.41b
£3.56b
£2.20b
£4.39b
£3.42b
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Number of grants
by local authorities
Some local authorities rank very highly for grants
received due to the the presence of a small number
of prominent companies, that receive a large
number of grants. Taking the London borough of
Tower Hamlets as an example, it ranks second for
the overall amount of funding received but 11th for
the number of grants. This can be attributed to the
presence of Starling Bank, a mobile-based current
account provider, which aids users in budgeting and
tracking finances, through the use of visualisation
tools. These are all available via their mobile app.
In 2019, Starling received a £100m job creation
grant, with the purpose of creating 398 new jobs.
This single grant contributed to 48.7% of the total
value of grant funding awarded to companies based
in Tower Hamlets since 2013.
Page 27
Top local authorities by number of grants received (2013–H1 2023)
Westminster
Islington
South Cambridgeshire
Edinburgh
Cambridge
Camden
Glasgow
Hackney
City of London
Vale of White Horse
Tower Hamlets
Bristol
626
589
674
842
592
555
541
541
406
389
493
393
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Grant value by
local authorities
Of the top 12 local authorities in the UK for grant
funding received, seven are London boroughs. When
combined, these seven boroughs were awarded
18.2% of the total value of grant funding between
2013 and H1 2023. This continues the trend of
London local authorities being top headquarters
locations for companies. In this case, those that also
attract significant amounts of grant funding.
In this ranking, we can see some other large cities, as
well as local authorities with ties to universities. The
latter may be popular destinations for grant funding
due to the innovative nature of the companies that
are established there. Additionally, these companies
tend to be in the newer stages of development, with
seed and venture-stage businesses being awarded
28.6% and 28.3% of the value of grants, respectively.
Solihull ranks 10th overall in the amount of grant
funding received since 2013 but ranks 54th in the
number of grants received. This has occurred because
GNKN Aerospace's headquarters is in Solihull. GKN
develops components and software which help to
improve the efficiency of aircraft. Since 2013, GKN
Aerospace has received 38 grants, totalling £112m. The
top 14 grants received by Solihull-based companies
went to GKN Aerospace, representative of 17.9% of the
total grant funding awarded to companies within the
local authority.
Page 28
Top local authorities by total value of grants received (2013–H1 2023)
Westminster
South Cambridgeshire
City of Edinburgh
Tower Hamlets
Cambridge
Tower Southwark
Hammersmith and Fulham
Camden
City of London
Solihull
Hackney
Vale of White Horse
£180m
£161m
£205m
£211m
£165m
£148m
£133m
£133m
£124m
£120m
£124m
£123m
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Methodology
Beauhurst identifies high-growth startup companies
using eight triggers (outlined on this page) that
it believes suggests a company has high-growth
potential. More detail on Beauhurst’s tracking
triggers is available via its website.
Equity investment
To be included in our analysis, any investment must be:
• Some form of equity investment
• Secured by a UK company
• Issued between 1 January 2013 and 30 June 2023.
Announced and unannounced fundraisings
An unannounced fundraising is an investment made
into a private company that is completed without
press coverage or a statement from the recipient
company or funds that made the investment. These
transactions are an integral part of the UK’s high-
growth economy, accounting for around 70% of all
equity transactions.
Grant funding
A company that has met our innovation grant trigger
is one that has formally accepted a grant offer for a
specific innovation project. The project’s primary focus
must be fostering ‘New to the market’ innovation, as
opposed to other aims such as job creation. The grant
must have been received between 1 January 2013 and
30 June 2023.
Academic spinouts
We define an academic spinout as a company that meets
condition 1 and at least one condition out of 2-4:
1. The company was set up to exploit IP developed by a
recognised UK university or research institution (this
is broadly in line with the Higher Education Statistics
Agency’s (HESA) definition of a spin-off)
2. The institution owns IP that it has licensed to
the company
3. The institution owns shares in the company
4. The institution has the right (via an options or
warrants contract) to purchase shares in the
company at a later date.
Scaleup
We class a company as a scaleup if it meets the
Organisation for Economic Co-operation and
Development (OECD)'s definition of a scaleup—20%
average yearly growth in employee headcount or
turnover, over a three-year period. We also track those
growing by 10% or more, aligned with small high-growth
firms’ OECD / Eurostat definition. The 10% and 20%
scale-up triggers are two separate triggers.
Page 29
High growth triggers
Equity
investment
Academic
spinouts
Scaleups
High-growth
lists
Accelerator
attendances
Major grant
recipients
Management
Buy-outs/
Buy-ins
Venture debt
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Barclays Eagle Labs is a growing national network
that provides business incubation, dedicated growth
programmes, mentoring, as well as co-working and
office space for ambitious high-growth businesses.

By cultivating a community of like-minded
entrepreneurs and providing a collaborative work
environment, access to peers and opportunities to
maximise growth through digital connections and
growth programmes, curated events and funding
opportunities, Eagle Labs is able to help startups to
grow at pace.

Eagle Labs also specialises in positively disrupting
key industries by bringing together key corporate
players, industry bodies, leading universities and
startups to enable rapid innovation and investment
by asking them to collaborate and currently have
dedicated lawtech, healthtech, energytech and
agritech industry-aligned programmes.


With various Eagle Labs dotted all across the UK and
many more in the pipeline, our focus is to help to
connect, educate, inspire and accelerate ambitious UK
businesses and entrepreneurs.

Find out more at labs.uk.barclays.
Page 30
Barclays Eagle Labs
Important Information
We have pulled together the resources in this document for you to help with your
independent research and business decisions. This document contains opinions from
independent third parties and link(s) to third party websites and resources that we (Barclays)
are not providing or recommending to you.
Barclays (including its employees, Directors and agents) accepts no responsibility and shall
have no liability in contract, tort or otherwise to any person in connection with this content
or the use of or reliance on any information or data set out in this content unless it expressly
agrees otherwise in writing.
It does not constitute an offer to sell or buy any security, investment, financial product
or service and does not constitute investment, professional, legal or tax advice, or a
recommendation with respect to any securities or financial instruments.
The information, statements and opinions contained in this document are of a general
nature only and do not take into account your individual circumstances including any laws,
policies, procedures or practices you, or your employer or businesses may have or be
subject to. Although the statements of fact on this page have been obtained from and are
based upon sources that Barclays believes to be reliable, Barclays does not guarantee their
accuracy or completeness.
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Beauhurst is a searchable database of the UK’s
high-growth companies.
Our platform is trusted by thousands of business
professionals to help them find, research and
monitor the most ambitious businesses in Britain.
We collect data on every company that meets
our unique criteria of high-growth; from equity-
backed startups to accelerator attendees, academic
spinouts and fast-growing scaleups.
Our data is also used by journalists and researchers
who seek to understand the high-growth economy.
It also powers studies by major organisations—
including the British Business Bank, HM Treasury and
Innovate UK—to help them develop effective policy.

For more information and a free demonstration, visit
beauhurst.com
Contact
4th Floor, Brixton House
385 Coldharbour Lane
London
SW9 8GL
www.beauhurst.com
T: +44 (0)20 7062 0060
E: consultancy@beauhurst.com
Page 31
Beauhurst
Executive summary Introduction Company lifecycles Ecosystem components Overview of local authorities Methodology About
Before you go
Get in touch if you would like to find
out how we can support you and your
business. We’d love to hear from you.
Barclays Bank UK PLC is authorised by the Prudential Regulation Authority and regulated by the
Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register
No. 759676). Registered in England.
Registered No. 9740322. Registered Office: 1 Churchill Place, London E14 5HP. Barclays Bank
UK PLC adheres to The Standards of Lending Practice which is monitored and enforced by The
Lending Standards Board. Further details can be found at www.lendingstandardsboard.org.uk.
Disclaimer
We’re not responsible for, nor do we endorse in any way, third party websites or content.
The views and opinions expressed in this report don’t necessarily reflect the views of Barclays
Bank UK PLC, nor should they be taken as statements of policy or intent of Barclays Bank UK PLC.
Barclays Bank UK PLC and its employees have made every attempt to ensure that the information
contained in this document is accurate at the time of publication. No warranties or undertakings of
any kind, whether express or implied, regarding the accuracy or completeness of the
information is given. Barclays accepts no liability for the impact of, or any loss arising from, any
decisions made based on information contained and views expressed in this document.
eaglelabs@barclays.com
labs.barclays
Barclays Eagle Labs
@Eagle_Labs
Barclays Eagle Labs
@eaglelabs
EagleLabs