The Rise Of Manchester As A Tech Hub
Manchester has experienced enormous transformation in recent years, firmly establishing itself as a hotspot for tech innovation and ambitious start-ups.
The city is now confirmed as the largest tech hub outside of London, with tech firms having raised a record-breaking £532m in funding in 2022. This is a 50% year-on-year increase for Manchester, and more than several major European cities - including Rome, Brussels, and Lisbon.
The latest data from the DCMS has also identified Manchester as the fastest-growing tech hub in the north of England - not surprising when you consider that 1,600+ start-ups and scaleups are now active in the city.
But what has fuelled this reinvention for Manchester? How has the city positioned itself as a pioneering tech hub, and what types of businesses are emerging from this transformation?
Let’s examine the rise of Manchester as a tech business leader, and explore how the city is continuing to gain momentum on the global stage.
What are some notable tech start-ups in Manchester?
Manchester has proven itself to be a fantastic incubator for new start-ups. The city has created an environment which allows small businesses to thrive, with a culture, facilities, and resources that are ideal for growing companies.
Below are 2 examples of start-ups that have achieved enormous success out of Manchester:
Be.EV
Be.EV is one of the fastest-growing electric vehicle charging networks in the UK.
Founded by Asif Ghafoor and Adrian Fielden-Gray, Be.EV focuses on providing electric vehicle charging services to local communities across the UK, improving the accessibility and convenience of charging solutions.
The company has already received backing from Octopus Energy and generated a significant amount of investment. Be.EV raised £110m in October 2022 and is working on plans to increase its footprint in the UK and rapidly expand its charging network.
The Modern Milkman
The Modern Milkman is a grocery delivery service on a mission to reduce plastic waste and create sustainable, equitable supply chains.
The business is B-Corp certified and has already made a sizable impact on the plastic waste crisis, having prevented 72m plastic bottles from polluting the environment and eliminated 172,372 wheelie bins’ worth of plastic.
The company has also received plenty of attention from investors, having closed a successful £50m investment round in November 2022. The Modern Milkman is aiming to close 2023 with over 100% year-on-year revenue growth.
These are two brilliant examples of ‘futurecorns’ (companies on their way to being valued at £1bn) based in Manchester. The wider tech scene in Manchester is also thriving - the fintech sector alone is set to contribute £1bn to the regional economy, while Whitecap Consulting data shows that the fintech industry in Greater Manchester is the largest outside of London.
How has Manchester become a successful tech hub?
1. Investment
Manchester has developed a strong culture of active investment and business growth, and currently boasts the second-largest economy in the UK.
This has created an excellent springboard for start-ups, enabling them to access various funding options and investment opportunities.
Praetura Ventures, for example, is a Manchester-based VC firm that has invested in several fast-growth tech companies such as Recourse AI. The Manchester tech landscape is hugely diverse, with companies across many industries receiving significant amounts of funding.
2. Affordability
Despite experiencing lightning-fast growth in recent years, Manchester remains a relatively low-cost city for new businesses. Start-ups looking to cut costs and capitalise on cheaper office space have found Manchester to be the ideal location for a fresh start.
This affordability also applies to both larger organisations looking for permanent offices and scale-ups searching for flexible co-working options. Even established businesses such as Autotrader have expanded their footprint in Manchester due to the cost-efficiency available.
3. Talent
Manchester also offers an impressive talent pool that can be a game-changer for tech start-ups.
Academic institutions such as the University Of Manchester, Manchester Metropolitan, and Salford University are all consistently producing talented graduates that are ideal for start-ups looking to drive growth.
(Affordability is also a major factor here, as prospects seeking out employment look to avoid the rising costs of London living and move elsewhere!)
Manchester universities are also gaining a reputation for high-quality courses in tech and computer science, opening up a conveyor belt of promising talent for tech start-ups.
4. Culture
The distinct culture of Manchester is also playing a huge role in the tech-led transformation of the city.
Manchester is a very appealing place to live, particularly for younger workers and recent graduates. The city is packed with unique historical landmarks, diverse cultural scenes, solid transport links, and reputable schools.
The tech ecosystem within Manchester is also a big selling point. Start-ups can enjoy a well-connected and close-knit culture that encourages positive collaboration. Matthew Scullion (CEO of Matillion) claims that Manchester is a “...naturally entrepreneurial place, but also quite pragmatic and friendly.”
Over time, Manchester has assembled all of the building blocks required for a thriving start-up scene. As Chris Sier (Chairman of FinTech North) puts it:
“With established financial services institutions, startups, scaleups, investors, universities and support services all highly active, all of the key components are in place for the continued growth of this vibrant sector in the region.”
Manchester was arguably the birthplace of early computer programming, so it’s fitting that the city has become one of the most exciting and progressive tech hubs in the world.
A unique combination of affordability, talent, and culture has produced an incredible environment for tech start-ups and budding entrepreneurs - and the future is extremely bright for business growth, innovation, and investment in Manchester.
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