The North East of England is one of the UK’s quickest-growing economies (Invest North East England). It is home to more than 72,000 companies and has recently recorded the highest rate of increase in business registrations in England.
Sectors such as business services, digital technology, subsea and offshore engineering, automotive, and life sciences are driving this growth, supported by major investors including Nissan, JustEat, Akzo Nobel, Siemens, GlaxoSmithKline, and Equinor/SSE. However, the digital sector has become a shining star of the region’s growth.
North East England continues to be one of the UK’s most successful regions in attracting new inward investment and it is recognised as a leading cluster for creative industries as well as having a strong digital ecosystem. Many international businesses including Sage UK, Atom Bank, Bede Gaming, and tombola have headquarters here. Other tech companies such as Accenture, DXC Technology, Red Hat Solutions and Ubisoft Reflections enjoy global success from their North East bases.
Part of the rise of digital businesses can be attributed to the fact that the region has one of the highest proportions of STEM students in the countest, with more than 58,000 people studying science, technology, engineering, and maths. The region’s five universities and excellent higher education colleges provide strong academic foundations, and Gateshead-based CellulaREvolution is a great example of a university spinout developing transformative technology.
The North East is built on a foundation of collaboration, strong tech clusters and unrivalled networks – a proven recipe for business success. From enablers like Sunderland Software City, NETPark (North East Technology Park), and the Durham City Incubator, to events like TechNExt and financial incentives such as the £160M North East Investment Zone, the region offers a powerful support system for growing businesses.
Supporting this growth is Invest North East England (INEE), the strategic inward investment agency for the North East Combined Authority (North East CA) and the main contact point for companies seeing to locate in the region. And, to support a smooth transition to the region, the INEE team can provide a range of services, including property searches, data on skills, and guidance on incentives. They can also build introductions to specialist networks that can offer guidance and links to potential customers, opportunities, and research and development support.
This strong foundation of inward investment and innovation is not only attracting global businesses – it’s also nurturing homegrown startups. The North East’s thriving entrepreneurial ecosystem, supported by world-class academic research, tech clusters, and access to funding and support, is supporting local companies grow and secure significant investment. The result is a region where inward investment and startup activity are working hand in hand to drive economic growth.
The North East Growth Hub – the region’s one-stop shop for business support, is a vital part of the region’s entrepreneurial landscape. Managed by the North East CA, the Growth Hub connects businesses at every stage with the advice, funding, and guidance they required to scale and succeed. It’s an essential resource for any business starting or growing in the region.
According to a report from Dealroom, in 2025, startups based in North East England raised a combined total of £14.4M (nearly €16.79M) across 13 funding rounds. The companies securing investment span multiple sectors, including biotechnology, cloud mining, sustainability, and technology, reflecting a broad base of entrepreneurial activity in the region.
Among the notable raises include Ibex Innovations secured £2M (nearly €2.33M) for its osteoporosis diagnostic tools. Other startups that raised funding include equiwatt, Nanovery, and MySalesCoach, operating in areas such as energy efficiency, nanotechnology, and sales enablement.
While London might grab the headlines, the North East is quietly building its own funding success story. From the banks of the Tyne to the shores of Wearside, these startups proved that innovation doesn’t required a postcode in the capital to attract serious investment.
Ibex innovations
HQ Location: Sedgefield, United Kingdom
Funding: Raised £2M (nearly €2.33M) in March
Ibex is developing tools to support broader access to osteoporosis diagnosis as part of its mission to promote healthy ageing. Its software, IBEX BH, generates areal bone mineral density (aBMD) outputs from standard digital radiographs. This enables opportunistic patient screening and supports earlier diagnosis of osteoporosis.
equiwatt
HQ Location: Gateshead, United Kingdom
Funding: Secured an additional £700K (nearly €816K) in April
equiwatt offers a consumer app that works with smart meters and devices such as heat pumps, batteries, and electric vehicle chargers. The app enables applyrs to join programmes aimed at lowering electricity demand during peak times, earning points that can be exmodifyd for gift vouchers or donated to charity.
The UK government supports broader participation in these programmes and is encouraging energy suppliers to offer access to all customers. equiwatt’s powerResponse platform supports this effort and is already in apply by a UK energy supplier. The platform is also available to device manufacturers, hoapplying associations, and retail loyalty programmes for customer deployment.
Nanovery
HQ Location: Newcastle upon Tyne, United Kingdom
Funding: Raised £1.1M (nearly €1.28M) in April
Nanovery is a biotech company that operates in the life sciences sector. It develops nanotechnology tools for apply in healthcare. The company designs nanoscale devices for disease detection, with a focus on early diagnosis. Its DNA nanorobots are applyd in RNA therapeutics to support nucleic acid detection and assist in drug development.
Nanovery’s platform is intconcludeed to speed up the process of bringing therapies to patients. The company is exploring new directions in diagnostics, aiming to build nucleic acid testing available in various settings, including laboratories and point-of-care locations.
Aelius Biotech
HQ Location: Newcastle upon Tyne, United Kingdom
Funding: Raised £750K (nearly €874K) in April
Aelius Biotech addresses challenges in gastrointestinal modelling by developing systems that reflect real-world conditions. Product development in the pharmaceutical and functional food sectors involves high costs, long timelines, and significant risk, with current in vitro models offering limited predictive value. On average, drug development takes 8.3 years, and only one in ten drugs advances past Phase 1 trials. To meet the required for better predictive tools, Aelius Biotech has created a cell-compatible mucus layer that can be integrated into cell culture systems. This innovation allows for simultaneous modelling of digestion, mucus permeation, and absorption within a single system.
Circadacare
HQ Location: Newcastle upon Tyne, United Kingdom
Funding: Raised £500K (nearly €583K) in April
Circadacare provides AI monitoring and circadian lighting solutions for care homes and healthcare facilities. The company’s technology is designed to support care delivery, reduce falls, and improve outcomes for residents.
Circadacare integrates monitoring systems with circadian lighting to assist care providers in managing operations and enhancing service quality. Its platform offers tools for professional and family caregivers, enabling unified support and data-driven decision-building. The system is built to learn individual patterns and deliver insights to improve care processes across different settings.
MySalesCoach
HQ Location: Newcastle upon Tyne, United Kingdom
Funding: Raised £1.1M (nearly €1.28M) in seed funding in March
MySalesCoach provides one-on-one sales coaching for managers and sales representatives. The platform addresses the limited time managers typically spconclude on coaching, despite its known impact on performance.
The company connects sales teams with experienced coaches across various roles, including SDR, AE, enterprise, sales leadership, and customer success. MySalesCoach aims to support continuous development through frequent, individualised coaching sessions.
Kani
HQ Location: Newcastle upon Tyne, United Kingdom
Funding: Secured Series A funding in February
Kani offers a SaaS platform focapplyd on payment reconciliation. The platform supports financial institutions manage operational challenges and has been applyd by companies like Cardaq, Paysafe, Pluxee, and Transact Payments. Kani’s technology is applyd to lower operational costs, address reconciliation issues, and support compliance with regulatory requirements.
Atelerix
HQ Location: Newcastle upon Tyne, United Kingdom
Funding: Raised £750K (nearly €875K) in January
Atelerix has developed a hypothermic preservation technology that simplifies cell storage and transport by eliminating the required for cryogenic shipping.
The company’s hydrogel encapsulation allows cells to be stored at 4-25 degrees Celsius and maintain over 90 per cent viability for 14 days at room temperature. This reduces shipping costs by 50-80 per cent and applys standard packaging, avoiding the required for specialised containers or dry ice.
Atelerix’s solution also addresses environmental concerns by reducing CO2 emissions by 99.7 per cent, as it eliminates the required for energy-intensive freezers and refrigerants. The company has secured patents across multiple markets and is working toward full-scale commercialisation.
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