How To Launch A Startup In Liverpool

Liverpool, a city in the North of England is fast-becoming one of the UK’s most exciting startup hubs.

According to Beauhurst, 85 equity investments were made in Liverpool-based startups during 2022 with a collective value of £93m.

It’s no wonder then, that so many entrepreneurs are looking to this affordable Northern English hub to launch their businesses.

If you are thinking about Liverpool as the location of your latest startup venture, we’ll go through everything you need to know before you move, including which incubators are there, what funding opportunities exist and how to network in the city.

 

Liverpool’s Startup Scene

 

Liverpool is one of the biggest startup hubs in the UK, with over 89,000 active companies in the region.

The city, which is well connected to hubs across the country like Manchester, Leeds and London, also comes with affordable living costs – making it appealing for businesses that want to keep costs lean in the early stages.

Additionally, Liverpool’s huge student population makes it an attractive place for businesses. This pool of young people ready to enter the world of work allows companies to find talent right on their doorstep.

Lastly, the low cost of living and running a company in Liverpool make it an appealing option for businesses that want to avoid the high prices associated with other UK hubs like London and Manchester.

 

What Sectors Are VCs Investing In, In Liverpool?

 

Historically, Liverpool has been a great business hub due to its port-side location, making it a strong city for logistics. But its potential doesn’t stop there.

According to the Beauhurst data, investment seems to be varied across a range of sectors. These include:

• E-health
• Fintech
• AI
• E-commerce
• Renewable energy

This shows that startups in a variety of sectors are thriving in the city, making it even more appealing for new businesses.

In fact, some of the startups that closed funding in the last year were:

Liverpool Chirochem – a biotech company specialising in drug discovery. The platform uses 3D imaging technology to test and develop new drugs and explore how they work.

Ocuwell – A spinout of Liverpool University, Ocuwell has created a small, portable device that can prevent, diagnose and treat eye issues. This technology was previously very expensive (and big) making it hard to use.

Circada – Circada is a company that has created a lighting system designed to mimic natural light and help people better connect with nature. The company raised £350,000 in its seed round, showing a need for more companies that bridge the gap between humans and the environments that best serve them.

 

 

Accelerators And Incubators In Liverpool

 

If you’re planning to launch a startup in Liverpool, you probably want to know that there are accelerators and incubators nearby to help grow the company.

Some of these include:

Built Ventures: Previously known as Nova Growth Capital, the company invests in SEIS and EIS companies in the region.

LYVA Labs: Focused on driving commercial growth in the region through partnerships, investment and helping to commercialise innovation.

University of Liverpool Enterprise: The University of Liverpool’s accelerator programme, helping research-based companies from the university launch businesses. Currently, the programme has helped found over 20 successful companies in the area.

 

Funding Resources Available

 

If you’re looking at starting a business in Liverpool, you probably want to know what options are available to help with funding. Some of these include:

 

VCs

 

VCs are a common way for startups to receive funding, some options in Liverpool include..

Maven Capital Partners: One of the UK’s leading private equity firms, driving growth for businesses across a variety of areas in the UK, including Liverpool.

Liverpool Ventures: A venture capital and private equity company, boosting businesses in the region.

Baltic Ventures: A Liverpool-based investor with a new accelerator programme looking to back 12 UK startups.

Gateway Angels: Previously the LCR Angel Network, this company exists to provide angel investments to companies within the Liverpool City Region.

 

Funding And Grants

 

If you are a Liverpool startup looking for funding outside of VCs, why not try one of the funds below:

Northern Powerhouse Investment Fund: An initiative designed to help businesses in the North of England with their growth plans. The fund, which includes £400 million of investment, is suitable for a range of companies in the region.

Liverpool City Region Capital Grant Fund: Offers between £10,000 – £75,000 matching funds raised by 20%. Suitable for Liverpool based SMEs that are 3 years old or more.

Business Growth Programme: Doesn’t give monetary assistance per se, but does give businesses advice on where they might be able to apply for funding.

Merseyside Special Investment Fund: Has a funding programme for high-growth businesses that gives them up to £75,000 or 20% of the total project cost to help businesses expand or locate in the region.

 

Should You Launch A Startup In Liverpool?

 

Liverpool is definitely an exciting place to launch a startup. Its range of funding options, the rise of entrepreneurship and the relatively low cost of living make it a great option for aspiring business leaders.

So, what are you waiting for?

Best of luck!