2025: A turning point for UK regional investment

Founded by a team of industry veterans— Jim Odell, Justin Urquhart Stewart, Paul Newsham, Martin Taylor, Michael Mcdowell, and Tony Backhouse—Regionally Ventures is committed to bridging the funding gap for high-growth regional businesses across the UK. With 70p of every £1 traditionally invested in London, regional businesses represent a valuable, yet often overlooked, segment of the market.

2025: A Turning Point for UK Regional Investment

As we step into 2025, the investment world feels like it’s standing on a precipice. The opportunities are immense, the challenges are real, and the balance of power is beginning to shift. For those of us championing regional businesses across the UK, the stakes are higher than ever.

At Regionally Ventures, we’re not just in the business of connecting businesses with capital; we’re fighting to level the playing field. London has long been the gravitational centre of investment, claiming 70p of every pound invested. But there’s a quiet revolution happening in the regions—one that’s as inspiring as it is overdue.

The Rise of Regional Powerhouses

Let’s start with a fact that should surprise no one: the UK’s regions are brimming with untapped potential. From advanced manufacturing in the Midlands to fintech hubs in Manchester, there’s a world outside of the Oxford-Cambridge-London triangle that deserves the same recognition and support. Yet, the numbers paint a stark picture: less than 10% of UK venture capital is directed at businesses outside of London and the South East. That’s a statistic we’ve been determined to change.

Investors are beginning to realise what they’re missing. Regional businesses aren’t just playing catch-up; they’re driving innovation in ways that are often way more resourceful and sustainable than their London counterparts. They’re creating jobs, strengthening communities, and contributing to a more balanced economy. And, most importantly, they’re achieving all this with far less capital—that’s a testament to their grit and creativity. Investors derive better value for money by investing in the regions; they get far more out of their capital while supporting transformative growth.

What Makes an Exceptional Opportunity?

In our line of work, we see certain patterns emerging among the most compelling regional businesses and in our opinion, these are the traits investors should be watching out for:

1. Resilience Over Perfection
   Founders outside London often face tougher funding conditions. This breeds resilience—an ability to pivot, problem-solve, and stretch resources. They know their markets inside out and can navigate obstacles with a practical, no-nonsense approach.

2. Visionary but Grounded Leadership
   The best leaders have bold ideas but also know how to execute. This year, we’re already seeing a shift towards collaborative leadership styles. Founders are bringing diverse voices into their strategies, whether that’s engaging with local communities or actively seeking out female leaders for their boards.

3. Sustainability as Standard
   Thankfully, sustainability isn’t just a buzzword anymore—it’s a non-negotiable. The businesses attracting the most attention are those with ESG (Environmental, Social, and Governance) at their core. Whether it’s clean tech startups in Yorkshire or sustainable agriculture initiatives in the South West, businesses are tackling the real problems while staying profitable.

Female Founders: A Missed Opportunity No Longer

One of the greatest frustrations—and opportunities—in investment lies with female founders. Women-led businesses consistently deliver higher returns and yet receive a fraction of the funding. It’s time for this to change, not as a token gesture but because it’s good business sense.

READ MORE:
Supporting Female Founders Could Unlock Billions In Growth

At Regionally Ventures, we’re making female founders a priority. It’s not about “giving women a chance”; it’s about recognising the glaring oversight in the market. Some of the most innovative businesses we work with are women-led, and we’re proud to champion them as part of our mission to rebalance the investment landscape.

Out-of-the-Box Thinking for Investors

For investors, 2025 isn’t just about playing it safe; it’s about being smart. Here are some trends that are reshaping the landscape:

• The Rise of Alternative Assets
  Peer-to-peer platforms and revenue-based financing models are opening up opportunities for regional businesses in ways that traditional VC funding hasn’t.

• Collaboration Over Competition
  Co-investment is becoming more common, with firms pooling resources to back regional businesses they might have previously overlooked.

• The London Premium Is Waning
  With hybrid working now the norm, the perceived advantage of being London-based is fading. Investors are waking up to the fact that the UK’s regions often offer better value for money and therefore a higher growth potential.

Why It Matters

The fight to rebalance investment in the UK isn’t just about economics; it’s about fairness. It’s about recognising that talent is everywhere, even when opportunity isn’t. It’s about creating a more resilient economy—one that doesn’t rely so heavily on a single city to pull the weight of an entire nation.

At Regionally Ventures, we see and acknowledge this every day. The businesses we support are asking for a chance. A chance to prove their worth, scale their operations, and show the world what regional talent can achieve.

For founders, this is your time. Investors are more open than ever to looking beyond the obvious. There’s never been a better moment for investors to cast your net wider. The returns—both financial and social—are waiting.

The Road Ahead

2025 will be a turning point. Whether we use this moment to bridge the gap between London and the regions, to champion diversity in all its forms, or to embrace sustainability as a default, the decisions we make now will shape the future of investment in the UK.

READ MORE:
The investment calendar year: Where timing is everything

At Regionally Ventures, we’re committed to being part of that future. If you’re a founder or an investor who shares our vision, let’s work together to make it happen. The regions are ready. Are you?

If you’re an investor looking to connect with high-potential regional businesses or a business seeking investment-readiness guidance, let’s talk. Our team at Regionally Ventures is here to help you make meaningful connections and achieve lasting success.