Raising capital has never been more challenging or competitive, especially in the North of England. Here’s why:
While the start-up ecosystem is booming, and entrepreneurship is more popular than ever, founders are also better prepared, which raises the bar for those looking to stand out.
While the ecosystem is thriving, funding hasn’t significantly increased. Angel groups like angelgroups and Sixth Wave Ventures are expanding, while EIS funds (e.g., DSW Ventures, Praetura Ventures and Par Equity) operate in a climate of economic malaise and institutional funds (e.g., Sure Valley Ventures, Northstar Ventures UK Venture Sunderland) appear as older funds disappear. VCTs remain cautious.
Scale-ups find it even more difficult. With proven technology but limited financial history they often fall into a gap between traditional VC and private equity. Northern Gritstone helps but other lead investors are increasingly elusive.
All of this means raising capital in 2025 is tougher than ever, and the bar is higher than ever.
Mastering fundraising in this environment means focusing on these key steps:
Be investment ready. Investment readiness is ensuring that the investment case (or business story) is well described, that risks an investor needs to take are understood and addressed in the business plan and that the plan is executable with the existing team.
Storytelling: Get help if needed and remember that an investment case is not the same thing as a story.
Be persistent—it pays off: Investor lethargy doesn’t equal disinterest.
Be realistic or seek advice if you’re not comfortable with terms and valuations.
Commit time: If you want to go beyond the usual investor list (the 80:20 rule definitely applies) fundraising takes months of effort. If you're too busy building value elsewhere in the business, seek support.
Looking for help? For pre-seed and seed, luckily, there’s strong support in the North of England, such as Venture.Community®️ (South Yorkshire), Baltic Ventures and LYVA Labs (Liverpool), Praeseed and Glenluna Ventures (Manchester). Organisations like Venture Community are especially helpful for guiding founders through fundraising.
Generally, for Series A and beyond, fundraising advisors can help manage national and international searches. If you’re raising capital and need this kind of support, consider NorthEast Capital LLP. Despite the name, they operate across the UK!
Good luck!
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