North East report shows need for improved access to tech funding
The study, Now and Next β The Finance Needs of the North East Tech Sector, was published by Dynamo North East CIC and presents three key recommendations to address funding challenges and unlock growth across the regionβs tech industry.
The findings were shaped by a recent Dynamo Leadership Forum, which brought together stakeholders from the technology and finance sectors to discuss barriers to investment and opportunities for creating a more connected, well-funded ecosystem.
Dr David Dunn, CEO of Dynamo, said: “We are fortunate as a region to boast a fantastic community of fast-growing tech businesses, however what the leadership forum highlighted is the critical importance of ensuring those businesses can access the finance required to continue realising their potential.
“By condensing the findings into three key recommendations, all of which have been shaped by those with experience of the often-arduous process of securing funding, hopefully it acts as a framework which can help translate opportunity into sustained economic growth.”
The North East is home to a growing number of ambitious tech firms, but the report found many are still struggling to secure the right kind of funding to scale.
While some finance options exist, the report argues that the region “lacks the tailored financial support required for businesses aiming to scale.”
The first recommendation calls for the creation of locally anchored, bespoke funding toolsβsuch as debt bridges and equity co-investment modelsβspecifically designed to support scaling tech companies.
The second proposes a one-stop regional finance portal to improve awareness and signposting of available funding sources.
The third focuses on building stronger investor-founder connections through a dedicated North East tech investor network, bringing together angel investors, venture capitalists, and institutional backers who understand the regionβs potential.
Dr Dunn said: “Coordinated leadership and a collective focus on delivery will be key to driving growth and establishing the North East as a leading destination for tech investment and innovation.
“We have the talent, the businesses and the foundations to really establish ourselves as a global tech hub but to capitalise on this, we must ensure we are doing all we can to support those entrepreneurs who will be key to the sector realising its full potential.”
The report also highlights the essential role that finance plays in attracting and retaining talent, positioning the North East as a global contender in the tech sector.
It advocates for renewed efforts to attract and keep skilled professionals through targeted incentives and stronger collaboration between industry and academia.
Kevin Beales, advisory board member at Dynamo and CEO and founder of MySalesCoach, chaired the Leadership Forum, which included 25 business owners and support organisations.
Mr Beales said: “From a founderβs perspective, itβs not just about getting money β itβs about getting the right money, at the right time, with the right terms.
“Weβve seen so many brilliant tech businesses constrained by difficult to navigate pathways and fragmented funding options over the years, and I think what this report highlights is a clear action plan of how we can prevent this going forward.
“By implementing these recommendations, I have every confidence we can help more companies innovate, create jobs and continue to fly the flag for North East tech across the UK and beyond.”
The report also calls for better alignment between public and private funding.
It stresses that government-backed grants and support schemes are important but should act as catalysts for private investment rather than operating in isolation.
Additionally, the report recommends raising the profile of the regionβs tech success stories on both a national and international stage to boost investor confidence and further highlight the North Eastβs growing reputation.