Accessing investment finance is considered by tech companies in the North to be their biggest issue alongside skills.

For northern entrepreneurs there are several barriers that hamper their ability to raise. Investors too are disadvantaged by having a sub-standard eco-system in which to operate. Tech North are proposing a co-investment fund to address these challenges.

The current investor market does not function properly in the North, evidenced by the fact that over 70% of the digital economy sits outside London but only 44% of investments are made into companies outside London and the many examples of great northern companies now based in London and the US.

Northern investors are spread disparately across a wide geography with investor networks based around cities leading to a rarity of investment deals involving investors from different areas. Start-ups struggle to find tech investors due to lack of accessible networks and pitching opportunities.

Despite significant wealth in the North, there are far fewer funds and investors than can satisfy the investment opportunities available. The ‘uneven playing field’ requires the ability to ‘onboard’ new and existing investors who are not investing in tech.

Government initiatives such as investment tax breaks are under-utilised with less than 8% of SEIS finance invested in Northern companies. Previous attempts to rectify the issues have had little impact. Other programmes on offer don’t coordinate and incentivise the private investors to enable a legacy of an engaged and dynamic investment eco-system.