1. Startup Activity Rising Across the UK (Not Just London)
New Business Formation Growth
A recent Startup Index report shows that entrepreneurial activity isn’t just concentrated in London — several UK regions saw strong increases in new company startups in the first half of 2025:
- Scotland recorded nearly an 18 % rise in new startups compared with the second half of 2024.
- The North East of England saw the fastest growth nationally, with around a 19 % increase in new businesses.
- The West Midlands and North West also showed double-digit growth rates.
This broad growth suggests that entrepreneurial confidence is spreading across the country. (rbs.co.uk)
2. Regional Tech Hubs & Government Support
Government Initiatives to Boost Regional Innovation
The UK government has launched multiple programmes to support startups outside London, including the Regional Tech Booster and related investments:
- 14 projects across Scotland, Northern Ireland, Wales, and English regions were funded to support tech businesses and create jobs. (GOV.UK)
- The Regional Tech Booster aims to offer mentoring, investment advice and skills workshops specifically outside traditional tech hotspots. (Startups.co.uk)
- Broader policy goals include narrowing the gap between London and regional tech ecosystems. (Startups Magazine)
These efforts are part of a wider push to decentralise innovation and ensure that founders across the UK have access to capital and networks.
Large-Scale Investment Vehicles
Mergers and investment funds aimed at boosting regional growth — for example, the newly formed £670 million PXN Group — are directing substantial capital into tech and innovation outside London. (Maddyness)
3. What the Data Says: Regional Startup Patterns
Beyond London in Fintech, AI, and Innovation
While London remains the UK’s largest tech hub, regional ecosystems are growing fast:
- A sizable portion of UK fintech companies (~33 %) are now based outside London, with big increases in cities like Manchester, Edinburgh and Cardiff. (Tenity)
- Startup clusters in technology, green innovation and manufacturing receive targeted backing from regional fund managers. (EU-Startups)
- Multiple regions report fast-rising startup activity and incorporation levels — reinforcing that entrepreneurial growth isn’t limited to the capital. (DataGardener | Manage Risk. Grow Faster.)
4. Where Growth Is Happening — Key Regional Hubs
Here are specific areas showing notable startup growth outside London:
Scotland
- Startup formation grew sharply, with nearly 18 % more new businesses in early 2025.
Founders are launching firms in sectors like hospitality, construction and professional services — plus emerging tech startups. (DIGIT)
Northern England (North East & North West)
- Regions including Newcastle, Manchester and the North West have double-digit startup growth.
- Manchester is now a major tech cluster with thousands of digital and tech companies and significant contributions to the UK digital economy. (British Business Bank)
West Midlands
- Another fast-growing region for new company registrations and innovation activities. (rbs.co.uk)
Bristol & South West
- Enterprise zones like the Bristol Temple Quarter are fostering startups in creative, tech and low-carbon industries, creating new hubs of innovation. (Wikipedia)
5. Why This Matters
1. Shift Toward a More Diverse Startup Ecosystem
The data shows that while London still leads, regional ecosystems are expanding, which makes the UK’s entrepreneurial landscape more balanced and resilient. (Digital Digest)
2. Local Talent and Innovation Are Fueling Growth
Cities outside London are attracting investment and talent — from digital services and fintech to advanced manufacturing and sustainability tech. (intelligentcio.com)
3. Policy and Capital Are Reaching Founders Nationwide
New funds, government programmes and regional accelerators help level the playing field for entrepreneurs far from the capital — giving them access to mentorship, investment, networks and support. (GOV.UK)
Summary: UK Startup Activity Beyond London
Startup activity is increasing nationwide, with Scotland, the North East, West Midlands, and North West showing strong incorporation growth. (rbs.co.uk)
Public and private support programmes are boosting local tech ecosystems outside London. (GOV.UK)
Regional hubs are attracting capital and talent, including in fintech, AI, and manufacturing. (Tenity)
The overall trend points to a more geographically diverse and competitive UK startup scene in 2026.
Here’s a detailed summary with case studies, founder comments, and expert insights showing how UK startup activity is growing strongly in regions beyond London — with real examples of businesses, hubs and opinions from founders and analysts: (natwest.com)
1. Broad Regional Growth Across the UK
Startup formation rising in multiple regions
According to the NatWest & Beauhurst New Startup Index, 426,000 new companies were registered in the UK in the first half of 2025 — and nine regions outside London all recorded increases in startup activity:
- North East +19 % growth
- Scotland +17.9 %
- West Midlands +16.9 %
- North West +16.5 %
This confirms that entrepreneurial energy is spreading well beyond the capital. (natwest.com)
Comment from industry:
“The UK’s entrepreneurial spirit is not only alive but accelerating… and *this momentum is not confined to London, with regional growth showing the strength and ambition of founders up and down the country.” — James Holian, NatWest Head of Business Banking (natwest.com)
2. Case Studies: High-Growth Startups Outside London
Here are real companies and stories illustrating regional success:
Evergreen Life — Manchester
- Healthtech startup based in Manchester
- Recorded over 550 % annual growth in revenue in recent rankings — the fastest of all UK tech companies outside London. (bdo.co.uk)
UrbanChain — Manchester
- Operates in the green energy marketplace sector
- Posted ~334 % revenue growth, showing demand for sustainability-focused tech beyond London. (bdo.co.uk)
ANNA Money — Cardiff
- Provides business accounting services
- Achieved ~140 % growth, reinforcing that fintech and business services are thriving regionally. (bdo.co.uk)
Mind Foundry — Oxford
- AI software company
- Posted ~216 % growth — a strong sign of tech adoption and commercial innovation in the regions. (bdo.co.uk)
Tandem — Blackpool
- Fintech business with over 100 % annual growth
- Shows that even smaller regional cities can produce breakout tech firms. (bdo.co.uk)
3. Strong Regional Tech Hubs
Edinburgh, Manchester, Bristol
A Barclays Eagle Labs report highlights these cities as major engines of high-growth businesses:
- Edinburgh (Scotland) has 450+ high-growth tech businesses, supported by Scottish Enterprise and university research.
- Manchester contributes roughly £30 billion in economic value from its tech ecosystem.
- Bristol is flourishing in robotics, aerospace and creative tech industries. (Business Matters)
Other Emerging Regional Hubs
According to ecosystem analyses:
- Leeds, Birmingham and Glasgow are building strong clusters in their own right.
- Regions such as the North West, West Midlands and South West are attracting founders and investors due to lower costs and local support programmes. (SIIT)
4. Founder & Expert Comments
Founders choosing regional hubs
Many entrepreneurs actively choose cities outside London when starting or scaling:
Manchester and Liverpool are cited as top choices for founders seeking vibrant tech communities and talent pools. (investinmanchester.com)
From coverage of founder communities:
“Manchester, Bristol, Birmingham, Leeds, Newcastle, Edinburgh — these cities are genuinely developing strong startup ecosystems and support networks.” — Comment from UK startup founders online (Reddit)
Experts also note that remote work and better digital connectivity have reduced the pressure to base a startup in London, making regional HQs more attractive. (Entrepreneur)
5. Investment and Funding Outside London
Regional funding is increasing too:
Around 45 % of UK startup funding rounds now happen outside London, with considerable deal activity in Manchester, Leeds, Bristol, Birmingham, Glasgow, and Belfast — showing investor confidence spreading geographically. (nexuscreativehq.com)
Summary: What’s Driving Regional Growth
Startup activity up nationwide: Multiple regions are showing strong company formation growth. (natwest.com)
High-growth firms aren’t just in London: Manchester, Cardiff, Oxford and other cities report major revenue spikes. (bdo.co.uk)
Founders are voting with their feet: Many choose regional hubs for cost-effective scaling and community support. (investinmanchester.com)
Funding is decentralising: A large share of funding rounds now happens outside the capital. (nexuscreativehq.com)
Ecosystem maturation: Regional university ties, accelerators, and startup networks are strengthening local innovation. (SIIT)