How To Launch A Startup In Leeds

Leeds is one of the UK’s fastest-growing cities in the heart of West Yorkshire. With its population of more than 800,00, it has quickly become a magnet for creativity and innovation where entrepreneurship thrives. Home to approximately 9,700 tech and digital companies, Leeds is considered a launchpad for startups innovating in these industries.

In addition to tech, the city has seen explosive growth in finance, healthcare and education businesses. If you are contemplating launching a startup in this Northern powerhouse, read on to find exactly how you can do it.

Why Start A Business In Leeds?

It’s affordable: Leeds is significantly cheaper than central London in all aspects, including housing, office spaces and salaries. This could be a drawcard for new startups who are strapped for cash in the early stages.

Transport to other areas: The central train station in Leeds offers direct routes to London, Manchester and other surrounding cities which makes these places more accessible for startups.

World-class universities: Leeds has five universities, including the University of Leeds. This is one of the most prestigious educational institutions in the world, offering top talent in tech, business and science.

Diverse industries: The city has an incredibly diverse economy and supports all sectors from green energy and gaming to fintech and healthtech.

Industries With High-Growth Potential

If you’re unsure of which industry you want your business to be in, it’s always helpful to see which ones are already doing well in your startup location. These sectors in Leeds are growing quickly, offering fertile ground for new ventures to come in and innovate.

Fintech: Leeds has a long-standing history of being a financial epicentre. This has created ample opportunities in the fintech space as well as digital banking solutions.

Media: Channel 4, a British broadcast TV channel, has had its headquarters in Leeds since 2018. The creative industry has taken off since then, expanding to digital marketing agencies and gaming developers.

Healthcare: The NHS Digital is based in Leeds with plenty of teaching hospitals, providing room for innovation in digital health and medical diagnostics.

Greentech: Sustainability and clean energy has been gaining significant momentum and startups in these sectors have grown tremendously.

Top Accelerators And Incubators For Startups

There are numerous accelerator and incubator programmes for new startups in Leeds. The mentorship and networking opportunities from these initiatives can greatly help a new venture to get off the ground.

Leeds Beckett University: The University-backed incubator assists both student and graduate entrepreneurs with funding advice and startup support.

Nexus Hub: This program is affiliated with the University of Leeds and offers office space and research facilities to new startups.

Leeds Digital Hub: This hub is found in the Platform, a tech co-working space, that runs workshops and connects founders with investors.

Funding Opportunities In Leeds

As a new startup, acquiring the financial resources to scale is essential. Let’s take a look at some of the funding avenues in Leeds that you could consider.

Leeds City Region Enterprise Partnership: Startups across West Yorkshire can access grants and loans from £10,000 to £250,000.

Northern Powerhouse Investment Fund: This organisation assists small to medium size enterprises (SMEs) with equity and debt finance in Northern England.

British Business Bank: The bank runs funding initiatives like Start Up Loans where founders can receive up to £25,000.

Venture capital or angel investors: There are multiple venture capital firms and angel investors located in Leeds.

Visa Requirements For Foreign Entrepreneurs

Non-UK citizens will need a visa in order to start a business in Leeds. There are two options available at the moment to choose from.

Global Talent Visa: This is suited for people who are highly skilled in the areas of art, science and tech. While applicants don’t need a job offer, they do need to prove endorsement from an approved organisation.

Innovator Founder Visa: This was launched in 2023 to replace startup visas. It will require an endorsement with an innovative business idea that is highly scalable. This visa is valid for three years with the possibility of permanent residence and founders can bring family members to work for the business.

How To Launch A Startup In Leeds

Ready to launch your startup in the vibrant city of Leeds? Here is a step-by-step guide on what you need to do.

Refine Your Idea And Choose A Legal Structure

Once you have completed your business plan to see if your idea is viable, you can decide on your legal entity. Most startups tend to register as a Private Limited Company with other alternatives being a sole trader or Limited Liability Partnership.

Register The Business

The next step is to register your business with Companies House and open a business bank account. If applicable, you can also register for taxes with HMRC.

Find A Location

You will need to decide between a permanent office space or flexible co-working spaces. Leeds has some fantastic co-working spaces to choose from.

Apply For Your Visa

The last step is to secure your endorsement required for your visa and submit the application through the UK government’s official website.

Should You Launch A Startup In Leeds?

The city of Leeds combines all of the elements needed for a successful venture. It’s dynamic, affordable to live and work in, and there is plenty of support for entrepreneurs whether it be financial or business advice.

If you’re planning on building a fintech company, launching a healthtech platform or opening a creative agency, Leeds has the resources and startup environment for you to innovate in.

Good luck!