Most UK startups aren’t in London. But most funding still is

Britain’s Got Startups is helping regional founders access the capital they’ve long been cut off from.

In the UK, 53 per cent of high-growth businesses are based outside London, but they receive only 39 per cent of the funding. 

Jenson Brook is a serial entrepreneur and the founder of Britain’s Got Startups, and is on a mission to change this.   

Britain’s Got Startups (BGS) helps early-stage and scaling companies outside London access investment, networks, and visibility by operating as a curated platform and event series that identifies high-potential startups across regions, including the North of England, Scotland, Wales, and the South West. Through structured showcases, BGS surfaces overlooked deal flow and creates more direct pathways to funding.

I spoke to Jenson Brook to learn all about it

Turning regional fragmentation into opportunity

Brook admits that he’s never been particularly academic. After high school, he started an apprenticeship at an accounting firm, which exposed him to private businesses and entrepreneurs early on. He then spent seven years in London, where he built and exited businesses focused on R&D tax relief, grants, and startup funding.  But he recalls that when he moved back to Yorkshire, the contrast was stark. 

“The network was far more fragmented. Investors were harder to find, often institutional rather than angel-led, and resources were very different.”

The idea for Britain’s Got Startups came from that gap. London has an incredible density of events, investors, and opportunities — so why couldn’t he create something equally strong outside London? It started with a pilot, the Northern Investment Event. Sixteen startups pitched.

Off the back of that, people from across the UK — the South West, Wales — started reaching out asking for something similar.

He recalled:

“We brought in around 20 London investors, and it became clear there’s real demand. What emerged was clear: there are great businesses across the UK that deserve to scale where they’re based — and investors need to see that.”

Why businesses outside London aren’t getting the funds

Brook attributes the funding disparity to a number of factors. First, over 80 per cent of early-stage investors are based in London. Naturally, they invest close to home: 

“They’ve got plenty of deal flow on their doorstep. Second, there’s an expectation that founders should come to London to raise. It’s seen as the hub, and people assume you need to be there.”

Third, there’s a lack of education around fundraising pathways outside London. According to Brook, founders outside London often bootstrap more. They build strong businesses, but grow more slowly because they don’t have the same access to capital.

“There’s also a broader mindset — many founders believe they need to move to London or the US to succeed. It becomes a self-fulfilling cycle.”

UK angel investing thrives — but remains regionally imbalanced

The UK has one of the most active angel investing ecosystems globally, but it is heavily driven by government tax incentives through schemes such as the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS),  with around 90 per cent of angel investors using them and most deals structured through these programmes. 

However, investment remains geographically concentrated, with a large share still flowing into London and the South East, reinforcing regional funding disparities. Brook attributes this in part to London’s dense network of angels, which doesn’t exist regionally, but also to cultural differences. 

“Regionally, people might build and exit a business — and then step back. In London or the US, founders often reinvest and stay active in the ecosystem.

We’re starting to see more early-stage VC activity outside London, which is encouraging. But angel investment still lags.”

While traditional networks still dominate access to capital, it’s starting to change. 

“We’re seeing more diverse funds emerge — for example, all-female GP funds — and a broader shift in mindset. But there’s still progress to be made,” shared Brook. 

What kinds of startups are being built outside London? 

When it comes to the kinds of startups emerging from regional areas, software companies dominate, but what’s interesting is how they’re applied.

According to Brook, “Outside London, we often see tech solving problems in traditional legacy industries — engineering, construction, manufacturing — rather than purely digital or AI-first businesses.”

“It’s a broader mix, often closer to real-world industrial needs, including  consumer businesses solving practical, everyday problems.”

Strong regional clusters dominate. Bristol and Leeds have high concentrations of tech talent. Manchester and Liverpool are growing hubs.  And then you’ve got the ‘Golden Triangle’ — Oxford, Cambridge, London — which drives a lot of biotech and life sciences spinouts. 

Brook asserts that universities such as Leeds, Manchester, and Liverpool have strong pathways for spinouts. 

But there are challenges. One of the biggest is equity — universities sometimes take very large stakes, which can make future fundraising difficult.

“There’s progress being made — organisations like Startup Coalition are pushing for better structures — but there’s still work to do.”

Why regional collaboration is the missing link

Another challenge is the lack of coordination across regional startup initiatives. Brook believes that if regions collaborated more and connected better with London and even Europe, it would open up far more opportunities for founders. 

“Organisations tend to operate in silos. More collaboration — between regions and with London — would create more opportunities. And the founders are experiencing fatigue. They’re being asked to pitch constantly.

One of the key pieces of feedback we’ve had is that they want more meaningful engagement — not just more events. There’s a real opportunity to think beyond ‘this region versus that region’ and instead build a more unified national ecosystem.”

The defining trait of regional founders

Brook characterises regional startups with one clear pattern — grit. 

“Regional founders often work incredibly hard — sometimes harder — because they’re further away from capital and networks. They don’t have the same access, so they push harder.

They’re persistent, they follow up relentlessly, and they don’t give up easily. I’ve seen founders fundraise for months without success, only to finally make a breakthrough through a chance connection. That level of persistence really stands out.”

£10 million raised — and a growing case for backing regional founders

Britain’s Got Startups has helped raise over £10 million for regional businesses in the past couple of years. What surprises many London-based investors is just how strong these companies are. They’re not just university spinouts — they’re also founders building practical, scalable businesses from places like Hull or the North East.

“There’s a real opportunity if investors are willing to look beyond London.”

Brook wants startups to know that BSG is not just a pitch competition. Rather, it’s a program that is constantly iterating based on feedback — improving the experience, refining the format, and focusing on real outcomes.

“We’re also introducing founder ambassadors, including people who’ve given us critical feedback, to make sure we keep improving. At its core, this is a passion project. We’re trying to build something that genuinely helps founders — not just another event.”

If the UK is to unlock the full potential of its startup ecosystem, the opportunity lies not just in London — but in connecting and backing the talent already building across the country.