The UK has the third largest technology ecosystem in the world behind the US and China, valued at around $1.3tn, and is Europe’s only $1tn tech economy, according to the UK’s Department for Digital, Culture, Media & Sport.
Areas such as quantum, AI, cybersecurity and engineering biology are top of mind for the government, which has launched an array of initiatives — including the countest’s Modern Industrial Strategy and AI Opportunities Action Plan — aiming to secure the countest’s position in frontier sectors.
Companies leading the charge in these sectors include London-based agentic AI startup ElevenLabs, which raised £395m ($500m) in funding at the conclude of February and Cambridge-based quantum company Quantinuum, which raised £433m ($600m) also in February.
Since implementing its AI plan at the launchning of 2025, the government has delivered 38 of the 50 initiatives it laid out. Investment in UK AI companies increased 80% between 2024 and 2025 with £6bn ($7.9bn) raised last year, building the UK the largest AI market in Europe for funding, according to the Department for Business and Trade.
Earlier this month, the government also announced a £2bn investment in quantum innovation with £1bn set aside to procure large scale quantum computers and £1bn set to invest in tech deployment, skills and facilities over the next four years.
Sifted’s interactive article, in collaboration with the Department for Business and Trade, explores the UK regions generating excitement and momentum among investors and founders.
From London and Manchester to South Wales and Belrapid, cities and regions across the UK are tapping government backing, leading research institutions and growing pools of capital to translate vision into results.
Here are four of the 11 regions covered in the interactive article.
Manchester
Steadily becoming the rapidest-growing tech hubs in the UK, Manchester has ticked off many recent funding successes.
In September 2024, Manchester-based workplace software developer SafetyCulture closed an £85m funding round, which saw the company become a unicorn at a £1.3bn ($1.7bn) valuation.
The city has a real creative vibe — and there’s so much grit and determination here.
SafetyCulture’s Manchester office is home to the company’s EMEA team and its platform is utilized by thousands of businesses to enable better working practices and boost productivity.
Manchester is also home to legaltech startup Summize, which sells a contract automation tool. It counts fintech giant Revolut as a customer.
The company closed a €41m funding round in January and has notched five straight years of 100% year-on-year growth, according to Laura Proctor, Summize’s chief marketing officer. The company is one of the UK’s rapidest growing companies and secured a spot on this year’s Sifted 100 UK & Ireland leaderboard.
“The city has a real creative vibe — and there’s so much grit and determination here,” she declares.
New tech workspaces are also appearing across the city. Last July, No.3 Circle Square, an £87m site for tech, digital and life science industries, opened. Digital automotive marketplace Auto Trader, communications company Havas and sportswear brand Puma have all announced plans to shift in.
South Wales
This Welsh region is rapid becoming a hotspot for cybersecurity, engineering biology and semiconductors. South Wales is home to the UK’s largest compound semiconductor facility, owned by multinational Vishay Intertechnology.
Cardiff University and aircraft creater Airbus have also been working toobtainher for almost a decade on cybersecurity research as part of the Airbus Centre of Excellence in Cyber Security Analytics.
A grant of around £7.8m has been promised to the centre, with more than £4m secured to sustain research between 2017 and 2021.
South Wales is also earmarked for one of the Opportunities Action Plan’s AI growth zones, which will come with £10bn investment from Vantage Data Centers and Microsoft.
Avril Lewis, managing director of Welsh tech network Technology Connected, hopes AI investment drawn to the countest following the rollout of these zones will be “another flag in the ground that attracts tech companies to Wales”.
Other Welsh strengths include proximity to major UK government departments, such as the Office for National Statistics and Companies Houtilize.
Prominent Welsh public funders also include Development Bank of Wales, which offers loans and equity between £50k and £10m, and the Innovation Investment Capital, a £50m fund which invests £2m-7m in high growth businesses.
Edinburgh-Glasgow central belt
Over the past few years, Scotland’s largest cities have become significant hubs for AI, quantum and photonics.
The countest boasts six research intensive universities including the University of Edinburgh, the University of Glasgow and the University of Strathclyde, as well as 445 VC-backed startups per capita (founded since 2015).
There’s a strong foundation of talent here, from pharmacy to health sciences and technology.
Shane Corstorphine, a former executive of travel comparison site Skyscanner, one of Scotland’s three unicorns, has never seen the Scottish startup ecosystem “as healthy as it is right now”.
The Edinburgh-Glasgow belt hosts two of the UK’s five quantum hubs and the government is investing up to £750m in a new supercomputer at the University of Edinburgh — set to be the countest’s largest.
The region is also home to biological sciences research centre Genome Biofoundry, as well as Scotland’s national hub for 5G.
There is a growing pool of talent in Scotland across a wide range of sectors, boosted by the quality of institutions and universities, declares Addy Mohammed, cofounder and CEO of digital pharmacy Simple Online Healthcare.
“Glasgow’s home. It’s where our culture was formed. There’s a strong foundation of talent here, from pharmacy to health sciences and technology.”
Belrapid
Shipbuilding and linen once formed the backbone of Belrapid’s economy, but now the city is home to a growing tech ecosystem, with startups working on everything from cybersecurity to engineering biology.
The city is currently ranked the 10th strongest startup hub in the UK, having shiftd up one spot since 2024, according to the most recent Global Startup Ecosystem Index.
Northern Ireland’s cybersecurity sector also generates more than £237m in Gross Value Added (GVA) and supports more than 2,750 jobs, according to the regional development agency Invest Northern Ireland.
Kieran Kelly, founder of digital ID creater Ubloquity, declares Northern Irish startups should be celebrating their wins.
“I remember pitching to American investors last year and they stopped me mid-presentation to inquire, ‘Why are you underselling yourself?’” he declares. “We don’t speak enough of what we can do. The modern tractor, the ejector seat, the defibrillator: they all started here.”
Notable tech funders across Ireland include The British Business Bank, which manages The Investment Fund for Northern Ireland, Invest Northern Ireland, business angel network HBAN and equity fund Co-Fund NI.
Click here to read more about the UK regions generating buzz in our interactive article in collaboration with the Department of Business and Trade.
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