Breaking Down Regional Investment Barriers: A Founder's Guide to Scaling Outside London

If you're building a tech company outside London, you already know the challenges. Whilst the UK's £1.2 trillion tech ecosystem continues to grow, with promising developments in Greater Manchester, West Yorkshire, and the West Midlands, there's still a significant disparity in investment access between London and the rest of the UK.

At VenturePath, we've seen this firsthand. Our founder community spans all UK regions, with 46% of our users based outside London. Through our digital investor readiness tools and direct work with founders nationwide, we've gained unique insights into both the challenges and opportunities facing regional scaleups.

The Investment Reality Check

The numbers tell a stark story. London receives 6x more investment than the next nearest region - £5.56bn compared to £0.87bn in the South East. For regions beyond these two markets, investment levels are not just lower, they're declining.

This funding concentration becomes critical at the late Seed-to-Series A transition - precisely when your company needs capital to scale. Recent data shows we've reached a 7-year low, with only 7% of seed-funded startups progressing to Series A rounds (£2-10m). For regional founders, this transition is even more challenging.

What We're Seeing on the Ground

Through our work with founders across all UK regions and partnerships with 20 nationwide universities, we've identified the core barriers regional scaleups face:

Limited Access to Growth Capital: Regional founders often struggle to identify appropriate investors and understand how to approach them effectively.

Knowledge Gaps: Many regional companies lack access to founders who've successfully navigated venture-backed scaling, particularly within their local ecosystem.

Fragmented Support: Whilst numerous regional and national support initiatives exist, they often operate in silos. Over half of scaling companies feel there's little support for businesses like theirs.

Investor Readiness Challenges: Regional founders frequently feel unprepared for institutional investment processes and lack the networks needed for effective investor introductions.

The Path Forward: What Regional Founders Need

Based on our experience supporting scaleups nationwide, here's what we believe regional founders need to succeed:

1. Clear Investment Pathways

You need systematic access to startup-to-scaleup investment expertise, not just general business advice. This means understanding different funding stages, investor types, and how to position your company for each.

2. Enhanced Investor Readiness Support

Regional investment readiness support needs to expand significantly. Recent research shows 5 in 10 scaleups want easier local access to funding advice and investor introductions. The support exists, but it needs to be more coordinated and accessible.

3. Connected Ecosystems

Location shouldn't limit your access to the UK's best investors. Regional ecosystems need better connections to national investment networks while maintaining strong local support structures.

4. Peer Networks

Access to funded founder networks is crucial. Learning from others who've successfully navigated the venture-backed journey - especially those who've done it from your region - provides invaluable insights and connections.

How VenturePath Is Addressing These Challenges

We're building systematically connected regional investment ecosystems where location no longer limits investment-backed scaling success. Our approach includes:

• Digital investor readiness tools accessible to founders across all UK regions

• Structured investment preparation programs tailored to different funding stages

• Active support networks connecting regional founders with successful peers

• Direct investor connections bridging the gap between regional talent and national capital

Taking Action

If you're a regional founder looking to scale, here are practical steps you can take:

1. Assess your investor readiness - Understand where you stand and what you need to improve before approaching investors

2. Build your network - Connect with other founders in your region and beyond who've successfully raised growth capital

3. Leverage available support - Whilst fragmented, significant support infrastructure exists - from Innovate UK's 400+ Innovation Growth Specialists to regional ScaleUp Directors

4. Think beyond your region - Whilst building local connections is important, don't limit yourself to regional investors

The Bigger Picture

The UK has the potential to be one of the world's best places for tech businesses to scale, regardless of location. Achieving this requires collaboration between regional founders, local ecosystem players, and national investors.

At VenturePath, we're committed to making this vision a reality. But we can't do it alone. We encourage more regional scaleups, ecosystem players, and investors to join us in strengthening these connections and creating more venture-backed successes across the UK.