Unlocking the potential of regional investment
This year’s Regional Investment Spotlight (IRIS) series showcased the vibrant hubs of innovation, growth, and ambition across the UK. From coastal towns to urban centres, each stop provided a unique opportunity to explore the strengths, weaknesses, similarities and differences across regional investment ecosystems.
Reflections from Innovate UK’s Regional Investment Spotlight (IRIS) series
This year’s IRIS series showcased the vibrant hubs of innovation, growth, and ambition across the UK. From coastal towns to urban centres, each stop provided a unique opportunity to explore the strengths, weaknesses, similarities and differences across regional investment ecosystems.
At each event, we convened investors, intermediaries, and innovation ecosystem stakeholders to drive discussion through an investment lens, focusing on key themes such as access to capital, investor engagement, regional disparities, and the need for inclusive growth. Participants shared candid reflections about what’s working, what’s missing, and what needs to change to unlock the full potential of regional innovation.
While each region presented unique investment dynamics, a clear set of shared outcomes emerged. There is widespread need for: more targeted investment support especially at the early-stage, better investor readiness across ecosystems, and stronger connections to capital providers, from angel investors to venture capital and private equity. Many expressed a desire for more visibility, both within the UK and to global investors, alongside recognition of the role played by education, networks, and collaboration in building investable opportunities.
The IRIS series demonstrates there is no one-size-fits-all solution. Instead, the path forward lies in working together across sectors, regions, and investor types to ensure that promising businesses, wherever they’re based, can scale with the right backing.
Regional insights
Below is a summary of the feedback gathered from each region. We are developing next steps and will share in due course.
Connecting to dealflow
Greater capital is needed to meet the demand of South West England as founders often turn to London for funding. Opportunities were identified to connect local investors to more dealflow in a targeted way, which would expedite syndication activity and shorten the fundraising timeline. Angel networks were also highlighted as route to unlocking private capital.
Early-stage barriers
In the East of England, early-stage companies require additional support as investors, especially Venture Capital firms, are hesitant to invest at that stage. A gap has opened for new generation family offices that can offer a promising alternative for investment due to their flexible mandate. Although here is no shortage of capital in the region, there is a shortage of talent in businesses. SMEs would benefit from more guidance and education to enable them to access the right funding to support their growth.
Investor shortage
In the West Midlands, one of the biggest challenges is the shortage of investors, especially at the seed-stage. Later-stage capital raising is also a problem as the region often loses its best innovators to London or overseas investors. There is a need to enhance investor readiness in the region and attract investors from across the UK and overseas to increase syndication.
Regional awareness
There was a consensus on the need to raise awareness of the vast number of regional opportunities to help enhance innovation activity in North East England. Participants agreed that the expertise of Business Growth representatives could be used to strengthen regional support mechanisms.
Investor readiness training
In North West England, many participants acknowledged that more investor readiness training or programmes were needed to help innovators understand their requirement for funding. In this region, innovators often look to overseas investors who typically have a longer investment cycle. Some investors suggested that British Business Bank could invest in the region through multiple smaller funds as opposed to larger funds.
Collaboration
Participants agreed there are opportunities to strengthen a pan-Wales approach by fostering collaborative engagement and building upon the strong support already available for businesses. Local innovators require educational support to enhance their understanding of scaling a company and in choosing experienced management teams. Foresight organisations such as Tramshed and Mspark were highlighted for their role in strengthening regional knowledge.
Wraparound support
A structural challenge in Northern Ireland is the limited availability of wraparound support for innovators, particularly for investment readiness, scaling businesses, and building commercial capability. While recent late-stage investor activity from investors such as the New York State Pension Fund (driven by the East Coast US/Irish connection and facilitated through regional VCs) benefitted the region, concerns remain about the sustainability of the flow of investment from the US. Opportunities were identified to mitigate this risk by connecting the Northern Irish investment ecosystem to UK and European investors to accelerate syndication. Investors and ecosystem stakeholders agreed that more work was needed to enhance equality, diversity, and inclusion in the region as previous efforts lacked structure.
Looking Ahead: Connecting the Regions to Capital
Building on the momentum of the 2024/25 IRIS series, our next phase deepens our commitment to create an investment ecosystem that is both inclusive and effective.
The 2025/26 IRIS programme will deliver 11 investor-led events across the UK, strategically aligned with existing innovation festivals and regional finance initiatives.
These events are not simply moments of reflection, they are designed as actionable platforms for investor-to-investor engagement, unlocking targeted capital flows into underrepresented regions.
Planned for Leeds, Belfast, Edinburgh, Newquay, Birmingham, Milton Keynes, Wrexham, Southampton, Sheffield, Manchester, and Hull/Newcastle, each IRIS event will be shaped by local dynamics while maintaining a national focus on investor readiness, syndication, and structural gaps in capital access.
Key to this approach is IRIS’s unique format which prioritises investor candour, without innovators in attendance. This investor-only model ensures high-level, focused dialogue that yields real insights into the challenges and opportunities of place-based investing.
Insights captured during these events will directly inform Innovate UK’s place-based investment strategy and help shape future programmes such as Investor Partnerships and Innovation Loans.
In parallel, IRIS will support ecosystem collaboration by convening intermediaries such as local government leads, university enterprise teams, angel syndicates, and national organisations like British Business Bank and the British Private Equity & Venture Capital Association.
By deliberately aligning with initiatives like Business Finance Week and Venture Fest South, IRIS creates the conditions for compound impact and lasting connections between ecosystem builders and capital providers.
Ultimately, IRIS 2025/26 is about more than events. It’s about building investor confidence, encouraging collaboration, and translating insight into capital movement. By continuing to listen, convene, and act, we aim to support a more connected investment landscape where regional strengths are visible, investable, and ready to scale.
Stay connected
The Investment Team is planning 10 events across the 25/26 financial year, entering new regions for the first time to build relationships with local investors and better understand reginal opportunities and challenges. The team will also return to selected locations to follow up on issues raised during previous IRIS sessions. Target regions include Belfast, Cornwall, Birmingham, Southampton, North Wales, Scotland and cities across the North East and North West of England. In regions we’re revisiting, we plan to invite investors from outside the area to encourage cross-regional collaboration and promote knowledge sharing.
To stay up to date with the latest news and opportunities sign up to our newsletter or contact investment@iukbc.org.uk to get involved with the series or a challenge in your region.
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