Emerging Investment Trends for 2025
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.
The investment landscape is shifting fast - are you keeping up?
Several key investment areas are gaining momentum this year, shaped by technological breakthroughs, environmental priorities, and shifting economic and political dynamics. Investors are increasingly drawn to science and technology-based businesses, recognising their potential for significant returns.
1. Artificial Intelligence and Automation
AI and automation are transforming industries by driving efficiencies and enabling innovation. However, the global AI market is becoming increasingly volatile. In the UK, sectors such as logistics, healthcare, and fintech are embracing AI at an unprecedented pace.
Rather than investing directly in AI itself, we recommend focusing on AI-enabled businesses - companies that are leveraging AI to enhance their operations rather than developing AI as a standalone product. A perfect example is healthcare and biotech, where AI-driven insights are accelerating drug discovery, diagnostics, and personalised treatment plans.
2. Healthtech and Biotech Innovations
The UK’s biotech sector - increasingly driven by AI tools, is at the forefront of breakthroughs in personalised medicine, gene therapy, and digital health. In 2023, the sector attracted £1.9 billion in investment, reflecting strong confidence in its long-term potential. Key areas of interest include CRISPR gene-editing technologies, wearable medical devices, and telehealth platforms, all of which address some of the world’s most pressing healthcare challenges. Given its rapid growth and tangible impact, we recommend this sector as having great potential for investors in the coming year.
3. Circular Economy Businesses
The need to improve efficiency and minimise waste is driving many new and growing businesses in the UK. AI has certainly helped to improve human efficiency but the Circular Economy is demanding a shift to minimise waste and emissions. According to the Ellen MacArthur Foundation, embracing circularity could unlock £1 trillion globally by 2029 while cutting greenhouse gas emissions by 39%. Investors are increasingly drawn to companies leading the way in recycling technologies, sustainable packaging, and closed-loop manufacturing systems. This transition is particularly evident in sectors such as fashion, where, despite the dominance of fast-fashion giants like Shein and Temu amid accusations of greenwashing, other brands are shifting towards more resource-efficient production models.
4. Renewable Energy and Clean Technology
The renewable energy sector is one that continues to attract capital as governments and businesses work towards net-zero goals. In the UK, updated plans including Labour's "Green Prosperity Plan" could underpin significant investments in offshore wind, hydrogen production, and energy storage technologies. Analysts at BloombergNEF project that by 2030, renewable energy investments will account for nearly 70% of all global energy funding. Key opportunities for investors include battery technologies and grid infrastructure to accommodate intermittent renewable power.
5. Sustainable Agriculture and Food Technology
As the population of our planet grows and pressure on our resources intensifies, sustainable agriculture will become a critical focus for investors. Innovations such as vertical farming, AI-powered precision agriculture, and alternative proteins (cricket protein, anyone?!) are reshaping how our food is both produced and consumed. The global market for alternative proteins, for example, is forecast to reach £26 billion by 2027, fuelled by rising consumer demand for sustainable food sources. In the UK, AgriTech start-ups such as Hummingbird Technologies are leading the way, using AI to optimise crop yields and support more efficient farming practices.
6. Regional UK Growth Areas
Investing in regional growth is becoming increasingly prominent, supported by government initiatives such as the Levelling Up Fund. Key regions like the Midlands and the North of England are emerging as investment hotspots, particularly in advanced manufacturing, renewable energy hubs, and logistics. The development of green freeports and major regional infrastructure projects provides stable, long-term opportunities for investors who seek resilience and diversification beyond London-centric markets.
At Regionally Ventures, we work with businesses across the UK to help them secure funding and scale their growth. By connecting ambitious companies with like-minded investors, we can drive regional economic success. To see how these trends fit with your 2025 strategy, or to explore our current opportunities, please get in touch.
If you share our vision for unlocking regional potential, we’d love to hear from you.