Pension corporations ought to capitalise on the chance to spice up funding into the tech sector, Science Minister Lord Vallance will inform traders in the present day in his speech on the British Enterprise Capital Affiliation’s (BVCA) non-public capital showcase.
Vallance will acknowledge that the UK is famend for excellence in analysis and incubating firms in sectors together with life sciences, AI and quantum know-how, however notice that many promising UK firms have been held again from scaling as a consequence of lack of capital.
“There are far too many UK firms working on the cutting-edge of rising applied sciences like AI, biotechnology and quantum, to which UK traders are underexposed,” stated Vallance.
“By our industrial technique, we’re constructing an setting the place public funding, streamlined regulation and partnerships with trade are channelling funding into science and know-how. Encouraging larger flows of capital into the sector is one other piece of the puzzle, supporting firms to develop and jobs to be created.”
Whereas $16bn has been invested into UK startups and scaleups final 12 months and greater than $8bn raised within the first half of 2025 – which exceeds France and Germany mixed – the federal government needs to go additional and sooner to spice up progress by its Plan for Change.
Right this moment, Vallance will name on non-public pension traders to work with VCs and different asset managers to again the subsequent era of high-growth firms. It’s hoped this could ship long-term returns for traders whereas protecting extra of the worth and jobs created by these firms within the UK.
New Improvements Cluster Map
A brand new and improved Innovation Clusters Map may also be unveiled in the present day to help traders find firms, sectors and areas of the UK to focus on for funding.
The instrument permits potential traders, trade, analysis establishments and authorities to know native innovation ecosystems and determine progress and funding alternatives.
It additionally identifies areas and areas the place networks of companies and analysis establishments are benefitting from shut proximity, boosting the consequences of analysis, improvement and innovation.
It’ll embrace data on sectors aligned with the federal government’s industrial technique, together with superior manufacturing, artistic, digital and tech, monetary providers, skilled and enterprise providers, and life sciences.
Clusters ripe for funding embrace the north west of England, the place life sciences firms are growing new medicine to combat most cancers and irritation, and vaccines to guard in opposition to the micro organism behind illnesses like pneumonia and sepsis.
Elsewhere, firms within the Glasgow metropolis area are constructing satellites that assist to underpin fashionable know-how and maintain the UK linked.