Why UK Investors Are Looking Closer to Home – The Shift Toward Regional Businesses
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.
Why UK Investors Are Finally Looking Beyond London
For years, UK investors have had a habit of looking overseas for opportunities or sticking close to London and the southeast. But something interesting is happening. There’s a growing shift toward regional businesses, and for good reason.
I’ve been in this industry long enough to know that trends don’t change overnight. But when they do, it’s worth paying attention.
The Market Has Created an Opportunity
Right now, UK stocks are trading at a discount compared to global markets. We’re seeing valuations that, frankly, don’t reflect the quality of the businesses behind them. Some of the sharpest fund managers—the likes of Jupiter, M&G, and Liontrust—have been flagging this for a while. After years of money flowing out of UK equities, we’re starting to see signs of a revival.
The FTSE 100 has hit record highs, the London Stock Exchange is seeing new listings, and fund flows are beginning to turn. Investors who know where to look are finding value in places they wouldn’t have considered five years ago.
London Still Dominates, But That’s Changing
Historically, London has dominated UK investment. In 2021, the city accounted for 45% of all foreign direct investment (FDI), with the South-East attracting another 17%, meaning nearly two-thirds of inbound investment was concentrated in just two regions. This trend has only intensified. In the 2023/24 financial year, London alone secured 503 FDI projects, while the South-East added 133, further widening the gap between these regions and the rest of the UK. While investment in some other areas has grown, London and the South-East continue to capture a disproportionate share of the UK's inbound capital
Now, here’s the problem: there’s a huge pool of talent, innovation, and growth happening outside the Golden Triangle - Oxford, Cambridge, London - but it’s not being funded at the same level. Investors are starting to realise they’ve been missing out.
Regionally Ventures: A Smarter Way to Invest in Regional Growth
At Regionally Ventures, we’re making sure our investors don’t overlook the UK’s best opportunities just because they’re not headquartered in Mayfair.
Led by Tony Backhouse, our Advisory Services team works with businesses before they even hit the investment market. The goal? To make sure they’re structured properly, ready for growth, and not just chasing funding for the sake of it. That’s what we call The Regional Way - an approach that connects investment-ready businesses with serious investors, ensuring both sides get the most out of the deal.
The Deals We’re Seeing Right Now
We’re currently working with a broad mix of businesses across multiple sectors—from advanced manufacturing in the Midlands to next-gen tech firms in the North. These are companies with real value, strong leadership, and serious growth potential, and unlike a lot of London-based startups chasing inflated valuations, many of these businesses are priced right, have solid fundamentals, and are profitable. We’re also finding great scale-up businesses throughout the country, including Northern Ireland.
Why This Matters for Investors
The UK’s economy depends on its regional businesses thriving. When capital is spread beyond London, it creates jobs, drives innovation, and strengthens local economies. More than that, it opens up a world of under-the-radar investment opportunities—often at far more attractive valuations than their London counterparts.
At Regionally Ventures, we’re making sure investors and businesses find the right match. If you’re looking for smart investment opportunities outside the usual circles, now’s the time to start paying attention.
CEO Jim Odell has plenty more thoughts on this subject - do get in touch with him if you would like to discuss how regional investments could fit into your strategy.
Sources:
J.P. Morgan Asset Management - UK Equity Market Outlook
Financial News London - Jupiter, M&G, and Liontrust on UK Stocks