Professional and Business Services - A growing investment opportunity

Astrid Ayel, Professional, Business and Financial Services Lead at Innovate UK Business Connect takes us through key insights from the days’ proceedings and engagements which focused on the investment opportunity emerging across PBS – a sector identified in the UK’s Modern Industrial Strategy as critical to national growth, increasingly shaped by AI and digital tools, and home to a growing number of investable businesses.

Throughout the day, discussions highlighted both the scale of the opportunity and the fact that the sector still struggles to fit conventional investment models.

Astrid Ayel said:

When we began the programme in 2018, many firms in the sector were still hesitant about change. Today, technology is reshaping the sector, changing how services are designed, delivered and commercialised. The priority now is to identify the high potential businesses emerging in this space and help create the validation, connections and investment pathways they need to scale for impact.

The forum was designed not only as a moment for discussion, but as a starting point for further connections between investors and sector stakeholders.

For details of the key insights shared at this event, you can read our Summary Report.

The agenda

Panellists discussed how technology enabled models are making the sector more scalable and more investable, raising the question on whether PBS could be approaching its own fintech moment.

At the same time, speakers were clear about the barriers that remain, including defensibility, routes to scale, later stage capital and visibility to investors. The discussion also pointed to what is needed to overcome them, including stronger regional investor networks, better pathways from early traction to scale, and closer links between finance, customers and institutional support.

The discussions also focused on the importance of liquidity and capital recycling in supporting long term market growth. Panellists explored why raising capital cannot be separated from returning it, and why stronger liquidity pathways, including secondaries and other market mechanisms, matter if capital is to flow more effectively through the UK innovation economy.

Gain more insights by watching the conference recording video and reading our Summary Report.

Key Takeaways from Attendees

Investor interest in professional and business services is growing, especially where businesses can show traction, trust and commercial readiness:

There’s capital available where you think that there is going to be a customer who gets this, buys it, and there’s traction because they trust it.

AI enabled opportunities across areas such as LegalTech, RegTech and specialist workflow tools, but emphasised that investors are looking for defensible value rather than AI hype.

Ongoing challenges around access to capital, later stage funding and liquidity, underlining the need for stronger routes from early innovation to scale.

Attendees described the forum as a practical opportunity to understand investor appetite, test market assumptions and make meaningful connections with funders

Next Steps and How to Get Involved

To discuss your organisation’s priorities and to explore potential next steps for digital adoption and collaboration opportunities, book a call with the team.

Keep an eye out for further insights from our next report that will provide a wider investment landscape focused on PBS that will be published very soon.

In the meantime, you can receive updates on funding and support opportunities for your business, by subscribing to the AI for Services Network newsletter and connecting with your community through our dedicated LinkedIn group.