New growth programme targets tech founders beyond London

Putting levelling up back on the agenda, the government’s infant innovation department, Department for Science, Innovation and Technology (DSIT) has today launched a new fund for tech scale-ups based outside London.

The £1m programme will deliver support to founders across several UK regions with large tech clusters, in order to encourage the growth and formation of digital SMEs and startups.

Commenting on the scheme, Minister for Tech and Future Digital Economy, Baroness Jones said: “Tech innovation doesn’t stop at the M25 and we’re choosing to invest in the talent and ideas flourishing across the UK.”

How will the new regional programme work?

Dubbed the Regional Tech Booster, the new initiative aims to level up the UK tech ecosystem by offering a mix of mentoring, investment advice, and skills workshops to regional entrepreneurs.

Programmes are not yet live, but tech clusters based across Scotland, the North East, Humber and East, and South Yorkshire are confirmed to be eligible to apply.

The fund will be used to support the scale-up of existing regional startups. But another goal appears to be to encourage new tech founders to start a business in UK towns and cities, as DSIT strives to grow the number of non-London pre-seed and series A startups. 

Regional startups struggle amid London dominance

The Regional Tech Booster aims to address two key challenges currently faced by regional startups: the dominance of London, and a lack of resources.

London remains Europe’s leading tech hub and also the financial capital of the UK, which has resulted in much of the resources for founders being concentrated inside the M25.

Of the technology startups that applied to our 2025 Startups 100 Index, just 22% were based outside of London, with the largest group of regional applicants being from the North West.

Other policies which have been rolled out to boost regional startups include AI Growth Zones, laid out in the government’s AI Action Plan. Plus, the Local Innovation Partnership Fund, which will play a major role in the Industrial Strategy, an eight-sector growth drive.

UKTCG selected as programme lead

DSIT has selected the UK Tech Cluster Group (UKTCG) to pilot the scheme. UKTCG is an organisation that works with local tech clusters to foster innovation.

Katie Gallagher, chair of the UKTCG and managing director of Manchester Digital, said: “UK nations and regions are home to a diverse and growing network of tech ecosystems. 

“This programme will focus on collaboration, connecting clusters, sharing best practice, supporting founders and entrepreneurs and creating a practical playbook for building strong, sustainable regional tech economies.”

According to the full DSIT news release, information on how regional tech clusters can apply for the programmes will be announced later this year.