STARTUP REVIEW:
A MANCHESTER
DIGITAL REPORT
ON THE STARTUP
LANDSCAPE IN
GREATER
MANCHESTER
INTRODUCTION
CONTENTS
History of startups in Mcr ............................................. 04
The growth of Manchester as a tech hub ...................... 05
Universities and spinouts .............................................. 06
The current landscape: where we are now .................... 07
How Manchester stacks up ........................................... 08
Manchester by the numbers ......................................... 09
Recent notable exits since 2020 ................................... 10
Strengths of Manchester as a startup ecosystem ....... 11
What Manchester still needs ........................................ 12
Top tips for Manchester founders ................................. 14
The directory

Investment: .......................................................... 16

Incubators: .......................................................... 17

Accelerators: ....................................................... 18

Support programmes: ......................................... 19
Recommendations ........................................................ 21
Conclusion and final words ........................................... 22
Introduction from Katie Gallagher,
managing director of Manchester Digital
With a rich history of innovation and creativity,
Greater Manchester now has a successful high
profile tech ecosystem. The region is known for
its predominantly large ecommerce businesses,
such as Boohoo, AO, AutoTrader, THG and On The
Beach, but is also very strong in other tech such
as healthtech, fintech, cyber and AI.
Back in 2010, the city’s startup scene
was relatively small, but it has developed
enormously over the last 13 years.
However, early stage startups and entrepreneurs
have seen a difficult few years, including
the Covid pandemic, high inflation affecting
business costs and wages, rising interest rates
and are now looking at a General Election
at some point next year. This has meant
challenging times for all businesses, but
particularly for startups and scaleups.
To grow a tech ecosystem that provides jobs and
encourages further investment, startups need
to be able to focus initially on innovating and
creating their product. With a lack of specific
infrastructure to help them flourish, as well as
external economic pressures, this makes it very
difficult and can hinder growth.
Data compiled for DSIT by Dealroom found that
funding in Manchester soared by 50% in 2022,
up from £355m from the previous year. Startups
in the region raised £532m in 2022, the largest
in the UK outside of London and the South East,
outperforming European cities such as Rome,
Lisbon, Warsaw and Brussels.
The data showed that over five years, Greater
Manchester businesses have collectively raised
£1.8bn in VC funding. On top of that, jobs in the
Manchester tech sector have increased 67%
from 2020, with tech counting for a quarter of all
jobs on offer in the area, according to Adzuna.
However, in terms of foreign direct investment
(FDI), the UK has dropped down the OEC
rankings from 12th to 20th in 2022, which is of
concern moving forwards. A just-released report
by Atomico found that VC funding in the UK fell
53% year on year, while globally tech funding
has fallen 39%
As an independent tech trade body, Manchester
Digital works with all businesses in the region to
create a tech sector for tomorrow which benefits
everyone. This means supporting the whole
ecosystem, from early-stage startups through
to collaboration with corporate businesses. Key
to our activity is creating the right foundations
for startups to be able to grow and flourish
within our region.
Scope of report
Our Startup Review 2023 outlines
the current state of play for early
startups and founders in our region.
The report also collates advice and
information, as well as a number
of recommendations to improve
our startup landscape in Greater
Manchester.
We have covered the history of
startups through to unicorns, exits
and IPOs, as well as a directory of
incubators, VCs and other support
networks.
This report has helped us to
understand what our regional
startups need to support them
and help them succeed.
Most startups fail within the first year,
so this is a crucial time for the right
support and guidance. In launching our
Startup Activator programme, we will
create a community for startups, with
guidance from our tech experts.
SPONSORED BY:
3
Manchester Digital / Startup Review
Manchester’s tech startup scene has come a long way since the days in 2010 when
it centred around a monthly meetup attended by a handful of entrepreneurs.
Even at that point, there had been success stories from the city. These included
Transitive, AppSense and NCC Group.
Transitive was a University of Manchester spinout, which created Apple’s ‘Rosetta’ tech
and was acquired by IBM in 2008. Both AppSense and NCC Group were both founded in
1999. Business software company AppSense was acquired in 2016, while NCC Group is
still based in Manchester and is listed on the London Stock Exchange.
But in 2010, the city was better known for digital and creative agencies that built
high-quality products for clients, as well as a wealth of web design, advertising
and marketing agencies.
There were also ecommerce successes like Boohoo and AutoTrader, as well as a
number of successful infrastructure and hosting providers.
Very few individuals launched their own tech-based products and sold them to the
world. The Manchester startup scene began to change noticeably in the early 2010s.
A new generation of entrepreneurs emerged, inspired by startup culture in the US and
the growing startup scene in London. On top of that, advances in cloud computing
made it much easier to spin up ideas on a shoestring budget. The city also saw better
connectivity with improved broadband speeds in the city centre.
Transitive, a Manchester startup which
created Apple’s ‘Rosetta’ tech is acquired
by IBM.
TechHub Manchester opens as the city’s
first tech startup-focused co-working
and events space.
Granada moves its studios from the city
centre into a new purpose-built Media
City studio, in the first stage of its move.
AutoTrader confirms move to First Street
to create a new HQ in Manchester.
The Government announces Tech North
in Manchester, a technology startup hub
that will open in the Northern Quarter.
Moneysupermarket announces it will
open a new city centre office at Spring
Gardens for its product engineering team.
In 2019, it announced it has signed up for
another new office in Spinningfields.
Brexit referendum - the British public
votes to leave the EU.
TalkTalk announces it will move its UK HQ
to its Salford Soapworks office.
Bruntwood launches Bruntwood SciTech,
a 50-50 joint venture with Legal &
General, dedicated to driving the growth
of the science and technology sector.
Amazon announces its newest corporate
office, in the Northern Quarter, with
capacity for 600 further roles.
THG floats on the London Stock Exchange
in a $7 billion IPO.
A report from Tech Nation finds that
Manchester is the fastest growing
tech city in Europe.
Booking.com moves into its £80m
new UK HQ after recruiting 450 new
employees in the city. This is its second
largest international office, behind
Amsterdam.
The Government announces it will build
a new hub at First Street, which will
host 2,500 civil servants, including 700
roles being relocated from London to
Manchester by 2025.
Starling Bank announces 1,000 jobs in a
new Manchester office, primarily in tech.
GMCA’s Manchester Digital Blueprint
2023 launched to show how Manchester
will grow its status as a world-class
digital destination.
The Autumn Statement announced that
Greater Manchester will be home to a
new Investment Zone for the advanced
materials and manufacturing sector,
backed by £160 million government
investment over the next decade. This
will include support for ID Manchester,
a new innovation district and joint
venture by The University of Manchester
and Bruntwood SciTech.
Bruntwood SciTech’s No.1 and No.2 Circle
Square opens on the former BBC site
on Oxford Road, with a number of tech
businesses moving into the site.
Matillion becomes a Manchester unicorn
when a $150m fundraise creates a
company value of $1.5bn.
Siemens announces it will relocate
its UK head office from Surrey to its
Didsbury site.
GCHQ opens a Manchester city
centre office.
Microsoft opens a new office in
Manchester as a base in the North.
Andy Burnham elected as first Mayor of
Greater Manchester.
The BBC moves a number of key
departments into Media City from
London, and Dock 10 studios opens. The
University of Salford moved its media-
related departments to Media City.
Katie Gallagher joins Manchester Digital
as MD and first full-time employee.
2022
2021
2019
2017
2015
2013
2011
2020
2018
2016
2014
2012
2008
HISTORY OF
STARTUPS
IN MANCHESTER
2023
THE GROWTH OF MANCHESTER AS A TECH HUB
Data source: Beauhurst
Manchester Digital / Startup Review
5
UNIVERSITIES AND SPINOUTS
Greater Manchester has some world-class universities, especially for science and
tech, with a number of research and innovation centres. The region also sees a strong
retention rate for graduates staying in the city. Centre for Cities found that in 2019,
51.5% of graduates remained in Manchester after graduation.
Data from Beauhurst earlier this year found that Manchester, along with Bristol,
showed the greatest proportional increase of university spinouts this year. The same
report ranks 42 universities in line with the volume of spinouts they have produced
since 2011. The University of Manchester is fifth with 84 spin outs and the top ranking
university outside of the golden triangle.
The University of Manchester’s Innovation Factory (previously UMI³) has produced 16
spinouts in the past two years. Graphene Innovations Manchester Ltd is one of the
most well-known spinouts, and has just been awarded the The Spectator’s Innovator
of the Year Award for Excellence in Sustainability.
On top of this, Manchester Metropolitan University launched its business incubator
Innospace in 2007, which also supports young businesses and entrepreneurs.
Just last month (November 2023), the Government released an independent review
of university spinout businesses, which recommended that universities take reduced
stakes in startups, and was met with approval from universities across the UK. It also
recognised Manchester as an emerging spin-out ecosystem but commented that it has
not yet matured to the point where IP, talent, capital, and support services are truly
self-reinforcing.
Northern Gritstone is an investment business, established in 2021 with the assistance
of the Universities of Manchester, Leeds and Sheffield, to focus on funding and
supporting university spinout businesses. In October 2022, it announced a final close
of £312m, anchored by investments from local authority pension funds.
Now look at how things have evolved ≥
A recent Sequoia Capital ranking of European
tech hotspots placed Manchester as having the
seventh-largest concentration of tech talent
across the whole of the continent, ahead of cities
such as Copenhagen, Zurich, and Barcelona.
This is undoubtedly driven in part by some of the
world’s biggest tech companies, like Amazon and
Arm, locating and expanding here. The city’s high
retention rate for university graduates is also
a strong factor. Such a concentration of talent
provides opportunities for growing startups.
Meanwhile, university spin-outs in fields like
life sciences and material science are a growing
part of the Manchester landscape. For example,
Concretene combines concrete with locally
discovered, super-strong material graphene.
The successes of companies like Matillion, which
raised a round at a $1.5 billion valuation in 2022;
Connex One, which raised £93 million in 2022, and
Peak, which raised $75 million in a round led by
SoftBank’s Vision Fund in 2021, have proved that
significant tech businesses can be built here.
Those examples also show how, as venture capital
investment activity in the Manchester region
has increased notably in recent years, investors
from outside the Northwest are taking increasing
interest in the city’s startups.
In 2023 alone, we’ve seen examples like Zaptic
raising a $10 million Series A led by London’s
Molten Ventures, and US-based Stage 2 Capital
leading AeroCloud’s $12.6 million Series A round
and Versori’s $3.5 million Seed round.
The number of local and regional investors is
growing too, reflecting an increased confidence
in the opportunities available to back promising
founders at an early stage. This can also be seen
in the launch of Manchester Angels in 2022, which
signals a growing interest in startups among high
net worth individuals in the area.
Manchester generates a steady stream of exits
too, with THG’s £5.4 billion IPO and YourGene
Health’s recent £16.7 million acquisition by
NOVACYT both providing examples of startups that
went all the way.
Data collected by Startup Genome put the
Manchester and Liverpool ecosystem’s total exit
value for tech companies at $12 billion, exceeding
the global national average of $11.3 billion.
In 2019…
51.5% OF GRADUATES
REMAINED IN
MANCHESTER
AFTER GRADUATION
THE CURRENT LANDSCAPE:
WHERE WE ARE NOW
CGI of the planned ID Manchester scheme
Bruntwood SciTech’s No 1 Circle Square
7
Manchester Digital / Startup Review
HOW MANCHESTER STACKS UP
City Region
Investment £
raised in 2022
Number of active high-
growth companies
Number of unicorns
LONDON
17,700,000,000
2264
47
CAMBRIDGE
910,000,000
154
2
MANCHESTER
680,000,000
415
2
EDINBURGH
511,000,000
72
1
BRISTOL
496,000,000
176
2
LEEDS
323,000,000
373
0
LIVERPOOL
99,200,000
116
0
Data source: Beauhurst
MANCHESTER BY THE NUMBERS
Total tech
investment deal
£ raised in 2022:
£680 M
[Source: Beauhurst]
Number of VC firms
with investments in
Manchester:
198
[Source: Crunchbase]
Estimated number
of people employed
by tech startups and
scaleups in Greater
Manchester in 2022:

60,000
[Source: Dealroom]
Manchester
tech companies
acquired in 2022:
20
[Source: Crunchbase]
Increase in
fintech startups
and scaleups in
Greater Manchester
since 2020:
218%
TO A TOTAL OF 124
[Source: Whitecap Consulting]
Tech startups and
scaleups based in
Greater Manchester
as of 2022:

1,600
[Source: Dealroom]
MANCHESTER HAS…
£680M OF INVESTMENT
415 HIGH GROWTH COMPANIES
2 UNICORNS
The new Booking.com Manchester offices
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Manchester Digital / Startup Review
RECENT NOTABLE EXITS SINCE 2020
Key recent Manchester tech exits since 2020:
“Access to talent is a strength in Manchester. You can fish in a big, deep
pond of people here. And you need that if you’re going to grow quickly.
You need to find talent at a high speed.”
HUGH CAMPBELL, MANAGING PARTNER, GP BULLHOUND
STRENGTHS OF MANCHESTER
AS A STARTUP ECOSYSTEM
THG
£5.4 billion IPO
(2020)
Music Magpie
£208 million IPO
(2021)
SatixFy Space Systems
Acquired for
$40 million by MDA
(2023)
GoProposal:
Acquired by
Sage Group
(2021)
Marq Millions:
Acquired by
eToro
(2020)
TapTrip:
Acquired by
TripStax
(2022)
Truepill UK
Acquired by
Phlo Technologies
(2023)
KnownOrigin:
Acquired by
eBay
(2022)
ResponseTap:
Acquired by
Infinity
(2021)
MusicForPets:
Acquired by
Create Music Group
(2023)
YourGene Health
Acquired for £17 million
by Novacyt
(2023)
OneFile:
Acquired by
Harris Computer Systems
(2021)
Malinko:
Acquired by
Civica
(2022)
TechReturners:
Acquired by
Northcoders
(2023)
Some of the benefits
of building a startup in
Manchester:
A highly
collaborative
ecosystem:
Lots of startups exist in
close physical proximity
and people help each other
with little sense of ego or
self-interest. Manchester
is big enough to be globally
ambitious but small enough
to have a strong sense of
community.
A lower cost to
build a business:
It costs much less than
London to run a business,
hire offices and hire talented
people in Manchester.
Strong
concentration
of tech talent:
High quality universities and
large tech employers in the
region provide high quality
hiring opportunities for
startups.
Strong
transport links:
Manchester’s location gives
it easy access to London and
the rest of the country by
train. Having one of the UK’s
largest airports on our doorstep
provides a wealth of direct
international connections.
Marketing skills:
Companies like THG and
BeyondTrust can prove
great training grounds for
entrepreneurial thinking and
a strong sense of marketing
strategy and discipline.
Great quality of life:
Manchester is an attractive
place to be based beyond its
business benefits, with lots of
leisure opportunities to keep
you and your team busy outside
work, helping to maintain a
strong work-life balance.
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Manchester Digital / Startup Review
“There’s a lot of talk about ‘why be in Manchester?’ but we don’t think
enough of ourselves as an export. We always compare ourselves to
London when there are other European tech hubs close by that we
can to travel to and build links with.”
– KIMBERLEY WALDRON, FOUNDER, SKYPARLOUR
WHAT MANCHESTER STILL NEEDS
Mid-stage investors:
While there is increasing early-stage money in the ecosystem, and a strong
private equity sector provides some exit opportunities, scale-ups have fewer
options. The likes of Praetura invest at this stage, but many companies have to
look further afield for investment.
Better transport infrastructure:
Networking around London is easy because you can jump on the Tube or
frequent local trains. While Manchester’s infrastructure is improving, it’s
difficult to network effectively when public transport travel across the region
is required.
More success stories:
Success breeds success. If founders see others around them doing well, it shows
what is possible. While the number of highly-ambitious founders in the city is
growing, Manchester still has a way to go before ambition and success create an
ongoing virtuous cycle.
A top-tier international tech event:
Just as the Web Summit brings people from around the world to Lisbon every
year, Manchester could benefit from such an event attracting a diverse range of
tech industry professionals from around the globe to the city on a regular basis.
A more cohesive sense of community:
In the world following the Covid lockdowns, there is less sense of a cohesive
startup community in Manchester than there once was, evident in there being
fewer events and social meetups.
Better international networks:
Manchester could benefit from stronger links with comparable ‘startup
cities’ that are easy to get to, such as Dublin, Paris, Amsterdam, Lisbon, or
Copenhagen. Startups in both cities could benefit from such networks, and they
would help get Manchester startups on more people’s radars internationally.
More local angel investors:
This is improving, in part due to the 2022 launch of Manchester Angels, but the
city still needs more angels who are well-versed in startup life and understand
how to build a portfolio of smart but risky bets on ambitious founders. More
education for angel investors can help, along with time for more founders to
successfully exit and then want to help the next generation with a first cheque.
More support for tech talent:
Startups struggle to compete with larger tech businesses to fill tech positions.
Wages for software developers, data scientists etc. have increased hugely over
the past few years as they are very sought-after, and young startups do not have
the cash to compete for high wages. Support is required to help early-stage
startups to attract tech talent.
Deeper understanding from regional government:
While our regional government fully understands the benefits of the
tech economy and are great champions of the sector, they need a deeper
understanding of how to grow the skills pathway and support entrepreneurs.
Manchester Digital / Startup Review
13
Don’t make the
mistakes others
have made in the past.
These tips are collected from
experienced founders, investors,
and others working in the
Manchester startup ecosystem.
01.
Make sure you understand the
venture capital model
If you want VC money, you should understand that
VCs are looking to back companies that will grow
to the point where they have multi-billion pound
valuations.
The economics of venture capital rely on a handful
of huge successes that deliver huge exits and
returns to investors. You need to prove that you
could be one of them.
Don’t look at funding as a one-off event. Instead,
plan the future of your company around how you
will grow from round to round as you work towards
floating on the stock market or being acquired for a
huge sum of money.
Ask yourself tough questions about how big your
market will be and whether you can scale to a size
that will make sense for venture capital. You have to
think globally, not just about the UK market.
Plan out how you will go to market and communicate
that clearly to investors. Ask yourself why your core
founding team is able to deliver this - what’s your
‘unfair advantage’ that makes you better than the
competition? You might have some great advisers,
but investors want to know what your own strengths
as founders are.
If your business isn’t VC-compatible, look for other
ways to fund its growth. This could be through
revenue, grant support, debt, or investors with
different motivations to VCs. Tech companies can
be very successful without a penny of VC money. As
Mailchimp’s $12 billion acquisition by Intuit showed,
they can sometimes have VC-scale exits, too.
You don’t have to action every
piece of advice you get. Take
things in the round and spot
patterns. I’ve seen businesses
that have changed their
pitch based on a random
conversation they’ve had,
and it’s just made their
market shrink immediately.”
– JESS JACKSON,
INVESTMENT MANAGER,
PRAETURA VENTURES
02.
Don’t be shy about
making connections
Some founders understandably don’t want to
disturb other people’s busy schedules, but broadly
speaking, people genuinely want to help each other
in Manchester. Don’t worry about reaching out -
the worst someone could say is no, but also, they
could really help your startup make its next big step
forward.
For fundraising, it often pays dividends to build
your network of potential investors before you
need them. That way, you have had time to
develop a relationship and understanding with
people who might be interested in investing when
the time comes.
03.
Grow your network beyond
Manchester early on:
While Manchester has a lot to offer, the best
first customer or investor for your startup
could be in another city or even another
country. In today’s hyper-connected world,
it’s easier than ever to develop relationships
all over the world. These connections will
help you once you’re ready to scale, too.
04.
Think about regulation early
in development:
Once you know what you want to bring to
market, make sure you know about any
regulations you might need to comply with. For
example, fintech startups might have specific
Financial Conduct Authority compliance
requirements before they can launch.
Getting approval can take time, so waiting until
your product is ready before you begin engaging
with regulators can create significant delays.
05.
Do due diligence on your
potential investors:
Not every investor is right for every business. Just
as investors will do due diligence on you, you need
to ask around and talk to others who have taken
investment from them. What do people say about
their reputation?
Talk to companies in their portfolio - pick a few at
random and get in touch with them yourself directly,
not via introductions or suggestions from the
investors themselves.
While you might feel you need funding from anyone
with money, the wrong investor could end up tied
to your company for years in an ‘unhappy marriage’
that could take the company down a path you really
don’t want to take.
Also, it’s important to make sure the investors
you pitch are right for your company. Investors
often complain about startups submitting decks
for opportunities that are completely out of the
scope of their fund. Get a feel for the people at VC
firms too, and make sure you hone your pitch to
individuals, rather than sending a blanket, generic
pitch email.
06.
Be precious with
your equity:
Giving equity to the wrong people on the wrong
terms can be fatal to companies, tying a big chunk
of the business up so that it’s not available for other
investors in another round. While there are no hard
and fast rules, make sure you get good advice and
guard your cap table. A bad cap table can be very
difficult to fix later.
“If you take an investor’s money,
you are marrying them. And in
the event of a divorce, you’re
not getting the house. You’re
not getting the dog. You’re
probably not getting the kids.
You’re barely escaping the
clothes off your back. So you
need to do your due diligence,
and reputation is very, very
important. Some investors have
poor reputations and some have
good reputations, and it’s your
job to find that out.”
– DAVID LEVINE,
PRINCIPAL,
MANCHESTER ANGELS
“Bad cap tables can kill
startups. I’ve come across
companies who have heavily
over-diluted with the wrong
partner or the wrong angel.
And then 18 months later try to
disentangle, and it’s very hard.”
– RUPERT WINGATE-SAUL,
FOUNDER,
FOUNDER FUNDING GROUPS
TOP TIPS FOR
MANCHESTER
FOUNDERS
Manchester Digital / Startup Review
15
DSW VENTURES
HQ: Manchester
Manchester investments include:
Shopblocks
www.dsw.vc
FEARLESS ADVENTURES
HQ: Wilmslow
Manchester investments include:
Shipster
www.fearlessadventures.co.uk
GC ANGELS
HQ: Manchester
Manchester investments include:
Twine, Gelmetix, Manchester
Imaging Limited, Biorelate
www.gcangels.uk
MANCHESTER ANGELS
HQ: Manchester
Manchester investments include:
Twine, Molymem
www.linkedin.com/company/
manchesterangels
MERCIA ASSET MANAGEMENT
HQ: Manchester
Manchester investments include:
AppLearn, Manchester Imaging,
Shopblocks, MusicMagpie,
Pimberly, ResponseTap
www.mercia.co.uk
NORTHERN GRITSTONE
HQ: Manchester
Manchester investments include:
Pencil Biosciences,
QV Bioelectronics, Imperagen
www.northern-gritstone.com
OCTOPUS VENTURES
HQ: London with a
Manchester office
Manchester investments include:
Pencil Biosciences
www.octopusventures.com
PRAETURA VENTURES
HQ: Manchester
Manchester investments include:
AeroCloud, Arctic Shores,
BankiFi, Culture Shift, Dr
Fertility, Modern Milkman, Orka,
Peak, PixelMax, Recourse AI
www.praeturaventures.com
SOLID BOND
HQ: Manchester
Manchester investments include:
PixelMax, Mapbuzz
www.solidbond.com
SURE VALLEY VENTURES
HQ: London with a Manchester
office
www.surevalleyventures.com
Investors further afield you
should consider include:
CONCEPT VENTURES
HQ: London
www.conceptventures.vc
HAATCH
HQ: Stamford, Lincolnshire
Manchester investments include:
Financielle, Made With Intent
www.haatch.com
PLAYFAIR CAPITAL
HQ: London
Manchester investments include:
AeroCloud
www.playfair.vc
RIVER CAPITAL
HQ: Liverpool
Operates ‘fund:AI’, the North’s
first dedicated AI, machine
learning and data science fund
www.rivercapitaluk.com
STAGE 2 CAPITAL
HQ: New York City
Manchester investments include:
Versori, AeroCloud
www.stage2.capital
THE DIRECTORY:
If you’re just beginning your startup journey, Manchester Digital has
collected together some of the best resources available for tech
startups in the local area.
It’s important to note that this is not an exhaustive list. It’s designed
to give you a starting point for exploring the ecosystem.
We will be updating this list every quarter on our website, so look out
for new additions in the coming months.
Investment:
Early-stage investors that are either locally based
or with a local presence, you should know about include:
Incubators:
They might offer a combination of advice and support, and desk space near
similar companies. But while the exact offer varies, these programmes exist to
help startups firm up their product and business model and go to market.
EXCHANGE:
In their own words:
“The Exchange programme provides support for
ambitious tech businesses and empowers them to
grow by providing access to the tools and learnings
to scale, as well as build a lasting collaborative
community of like-minded forward-thinking
entrepreneurs.”
Sector: A broad variety of startups accepted
Offer includes: Desk space; workshops, access to
expertise, resources and support from industry
partners; up-skill sessions and high profile
speakers
Location: Department Bonded Warehouse, Lower
Byrom Street, Manchester
www.enterprisecityuk.com/exchange
DISH: GREATER MANCHESTER SECURITY HUB:
In their own words:
“Bringing together experts in digital and cyber
security from the public, private and academic
sectors to help Greater Manchester’s digital
security startups to innovate and grow.”
Sector: Cybersecurity
Offer includes: Desk space, ecosystem expertise,
growth programmes
Location: Manchester city centre
https://labs.uk.barclays/dish/
MANCHESTER TECH INCUBATOR
In their own words:
“In partnership with Manchester Digital, the Tech
Incubator is ideal for disruptive data science and
innovative technology businesses.”
Sector: Broad variety of startups
Offer includes: Coworking space and small private
serviced offices for 2-12 people are available, and
include dedicated business support to access
finance and funding, world-class talent, new
markets, and the connections your business needs
to succeed
Location: Oxford Road, Manchester
www.bruntwood.co.uk/our-locations/manchester/
manchester-technology-centre
ZEBOX:
In their own words:
“A network of entrepreneurs, industry leaders,
and ecosystem experts paving new paths toward
sustainability starting with the supply chain.”
Sector: Startups that have relevance to supply
chains and sustainability
Offer includes: ZEBOX’s Execute programme
provides personalised support, helping startups
in the entrepreneurial execution of their project to
raise funds.
Location: 127 Portland Street, Manchester
www.ze-box.io
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Accelerators:
Traditionally, accelerators combine support and desk space with investment and a
‘demo day’ even to present their latest cohort of startups to investors.
Not all accelerators are the same though, so check what an accelerator offers carefully,
and make sure you understand any fees they may deduct from any headline investment
figure they mention.
As accelerators often take a stake in your business (or at the very least take up a lot of
your time) - do due diligence to check the accelerator you’re considering has a strong
reputation and is the right fit for your company.
Notable accelerators in the Northwest currently include:
BALTIC VENTURES:
In their own words:
“A tech accelerator on a mission to support
game-changing founding teams who are building
the solutions and businesses of tomorrow. From
our hyper-local base in Liverpool’s Baltic Triangle
we accelerate early-stage tech businesses with
global ambition”
Sector: A broad variety of startups accepted
Offer includes: 4-month cohort programme,
including £50,000 investment, weekly workshops,
VC investor meetings, and mentorship
Location: Liverpool
www.balticventures.uk
DISH ACCELERATOR:
In their own words:
“Designed to give cyber startups and
entrepreneurs everything they need to grow
and succeed.”
Sector: Cybersecurity startups based in Greater
Manchester or those looking to set up operations
there and who can attend the programme in
person, up to two days per week
Offer includes: Free workspace, business
masterclasses, 1:1 mentoring, pitch and investor
readiness coaching, industry introductions and
events
Location: Manchester
https://labs.uk.barclays/dish/dish/dish-
accelerator/
ZEBOX ACCELERATE:
In their own words:
“A network of entrepreneurs, industry leaders,
and ecosystem experts paving new paths toward
sustainability starting with the supply chain.”
Sector: Startups that have relevance to supply
chains and sustainability
Offer includes: ZEBOX’s Accelerate programme
offers the most mature startups personalised
support focused on generating business
opportunities with ZEBOX industry partners
Location: Manchester
www.ze-box.io
NATWEST ACCELERATOR:
In their own words:
“The NatWest Accelerator supports and empowers
UK entrepreneurs to scale their businesses to
the next level. If you’re a business with ambitions
to expand, the NatWest Accelerator programme
could help. You may be looking to build your team,
venture into new markets or seeking further
investment.”
Sector: A broad variety of startups accepted
Offer includes: One-to-one coaching, thought
leadership and events, peer network, access to
expert, use of co-working space
Location: Manchester
www.natwest.com/business/business-services/
entrepreneur-accelerator.html
Accelerators further afield that are
worth considering include:
Y COMBINATOR:
Globally respected programme that has
nurtured companies like Stripe, Airbnb, Twitch,
and Reddit. Manchester startup Versori took
part in its Winter 2023 cohort.
In their own words:
“We give startups a disproportionate
advantage… We help founders make
something people want and the results speak
for themselves.”
Sector: A broad variety of startups accepted
from across the world
Offer includes: 3-month on-site programme in
San Francisco. $500,000 investment for a 7%
stake in your startup
Location: San Francisco
www.ycombinator.com
TECHSTARS:
Another internationally respected brand that
helped shape the accelerator format. Techstars
offers programmes around the world, as well
as a remote programme. Manchester startup
Collctiv took part in its New York programme
in 2022.
In their own words:
“As one of the largest pre-seed investors in
the world, our portfolio is as diversified as our
8,600 founders are unique… We support many
of the world’s best entrepreneurs with access
to capital, mentoring, finding customers, hiring
talent, choosing the right infrastructure, and
much more!”
Sector: A broad variety of startups accepted
from across the world
Offer includes: 3-month programme divided
into ‘Grow Your Network’, ‘Execute’,
and ‘Fundraising Strategy & Demo Day’
sections. Up to $120,000 investment
Location: Many around the world, plus remote
www.techstars.com
Sector specific accelerators: Consider sector-
specific accelerators in other parts of the
world if they can provide you with the right
opportunities and connections to help you grow.
For example, Manchester startup Sparkbox was
accepted on the New York Fashion Tech Lab
programme earlier this year.
Support programmes:
Other forms of support for
early stage startups:
FUND HER NORTH:
In their own words:
“A Northern-based, volunteer collective of over
40 women (in VC’s, funding organisations and angel
groups), with a combined investment power of
over £1.2 billion… We’ve come together to improve
access to funding for female-led businesses in
the North of England through start-up, scale up
and exit.”
Offer includes: “We tailor support and introductions
based on stage of development and in-depth
understanding of the requirements of the business
and its leaders.”
Location: North of England
www.fundhernorth.com
TURING INNOVATION CATALYST MANCHESTER:
In their own words:
“AI is the world’s fastest growing deep digital tech
sector. Its infinite possibilities are set to transform
our collective future, and right now you can get
involved as part of Turing Innovation Catalyst
Manchester. Set to launch in 2023, our focus will
be on commercialising and accelerating AI, deep
digital tech, and digital trust technologies.”
Offer includes: AI startup accelerator, skills
programmes, PhD venture building programme,
collaborative R&D programme
Location: Manchester
www.ticmanchester.org
FOUNDER FUNDING GROUPS:
In their own words:
“Peer-to-peer support and learning for founders
raising funding rounds. Founders will help each
other to close their rounds faster and on the best
possible terms by sharing up to date market
intelligence, real life experiences, best practice and
moral support.”
Offer includes: Informal group meetings to share
experiences and advice. For founders raising
between £100,000 and £1 million
Location: Manchester and Sheffield
Contact: Rupert Wingate-Saul
www.linkedin.com/in/rupert-wingate-saul
Manchester Digital / Startup Review
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Are you a founder of a
tech or digital startup
in Greater Manchester?
Do you want to be part of a fully-funded
programme that will guide you from idea
stage through to early traction?
Sign up for priority access to our
Startup Activator programme
www.manchesterdigital.com/startup-activator
RECOMMENDATIONS
Stronger sense of community
One of the key reasons Manchester Digital
decided to launch its Startup Activator was
the clear need for a community of startups.
Post-Covid the number of meetups and startup
community events had decreased dramatically,
especially with more people working from home
for most of the week.
Creating central neutral place for early founders
to get advice
As a not-for-profit membership trade
organisation, this is a great opportunity for us to
provide a neutral central point for startups to gain
the right advice.
Clear oversight of region’s assets to benefit
startups
It’s important for us to continue to monitor and
assess what our region has to offer startups and
what it is missing. As a trade organisation, we will
continue reporting on what our region has to offer
startups and its continued growth as a tech hub.
More transparency for university spinouts
Northern Gritstone have done some great work
to invest in and promote our Northern university
spinouts. We welcomed the recent Government
Independent Spinout Review. However, we would
like to see some more work around making deals
transparent, as well as setting a flat equity fee.
Creating a diverse culture
Lack of diversity and inclusion in the tech sector
is an ongoing problem. More programmes and
funding are required specifically to encourage
and develop entrepreneurs and founders from
diverse backgrounds across our region.
Build better connections between startup stages
Startups don’t just need support at the very early
stages, they need full support to grow through all
of the stages, as well as independent advice on
moving through the next stages of investment and
funding. Create founder peer groups so learning,
mentoring and sharing of best practice become
ingrained in our startup culture.
Build up monthly successes
We need regular comms going to investors and
relevant stakeholders to highlight the innovation
happening here and deals happening on the
ground. This will also provide inspiration and
aspiration to other entrepreneurs and startups
to understand the scale of what they can achieve
with the assets on offer in the region.
Build relationships with European counterparts
Manchester has a lack of connection with
other leading European startup hubs. Better
connections from business and municipal leaders
with their corresponding leaders across Europe
would lead to knowledge sharing and better
working relationships. Budget airlines mean that
all the tech hubs are mostly within three hours
flight, which shows how achievable this is.
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CONCLUSION
AND FINAL WORD
In publishing our Startup Review and launching our Startup
Activator, we have taken a good look at our current startup and
tech ecosystem. Manchester has always been a city of innovation
and creativity, building on its history from the Industrial
Revolution onwards, to emerge as a fast-growing tech ecosystem.
There has been a tremendous amount of hard work from individuals and
businesses, as well as our local government, to get us to where we are now
- and for that, we thank every single person involved.
This is a pivotal time in our history. Over the last few years, businesses and
individuals have had to face a global pandemic, huge cost of living crisis and
a lot of political instability. We have also seen the vast growth of generative AI
giving us a glimpse of how it could change our working lives and unlock a huge
amount of potential around the way we live and work.
While Manchester has been through its initial growth period and is now a
mature and recognised tech hub, it is time for the next iteration.
Encouraging an economy of innovation will help support the economic growth
of our whole city. We are in no doubt that the tech sector can provide a vast
range of jobs, creating the social mobility that our region so desperately needs.
That is why now is the ideal time to design our digital future. We need to work
together, bringing together tech leaders, entrepreneurs and municipal leaders,
to collaborate for the greater good.
Our Startup Activator is only the beginning.
As a trade body, Manchester Digital also works with central Government and
MPs to help shape and influence policy, works alongside businesses large and
small to share knowledge and continue growing our tech community.
ACKNOWLEDGEMENTS:
Thank you to the following people who gave their time,
knowledge and experience to helping compile this guide.
HUGH CAMPBELL, GP BULLHOUND
BEN DAVIES, PRAETURA VENTURES
TIM DEMPSEY, EPIPHANY CAPITAL
ISAAC HARMER, EVERLINK
JESS JACKSON, PRAETURA VENTURES
DAVID LEVINE, MANCHESTER ANGELS
GEORGE MENSAH, SURE VALLEY VENTURES
ALICE PICKERSGILL, EXCHANGE
PATRICK SMITH, ZALLY
KIMBERLEY WALDRON, SKYPARLOUR
RUPERT WINGATE-SAUL, FOUNDER FUNDING GROUPS
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Manchester Digital / Startup Review