How To Launch A Startup In Manchester

The city of Manchester has become one of the UK’s most exciting cities for startups. According to a report by Beauhurst, Manchester ranks as one of the top five startup hubs located in the United Kingdom, with 679 active high-growth companies to date.

It certainly is a promising location to launch your startup, if you have been eyeing it. This guide will cover everything you need to know before you proceed, from accessing accelerators and incubators to funding resources and which industries have a reputation of success.

Get To Know Manchester’s Startup Scene

Aside from London, Manchester is the biggest hub for startup activity. With more than 1,600 startups, the city is known as the ‘Northern Powerhouse.’

The city plays a significant role in driving the UK’s economy for a couple of reasons. One is that it boasts plenty of successful industries, including e-commerce, technology and health tech to name a few.

Additionally, its world-class institutions such as the University of Manchester and Manchester Metropolitan University provide companies with access to some of the most skilled graduates entering the workforce.

The costs of living and running a business are also lower than what you would find in London, which makes it an ideal option for startup founders.

Successful Industries In Manchester

Manchester’s startup scene is a diverse one, attributed to the availability of resources, support and talent pool. These are some of the industries where startups are known to perform well, and may be worth looking into if you haven’t committed to a sector yet.

Technology: Manchester already has a reputation of being a tech hub, the second-largest after London, especially in the sectors of fintech, cybersecurity and software development. Each year, the city hosts the Manchester Tech Festival over a two-week period, with conferences and events focused on tech innovation.

Media: The city is the go-to for startups looking to break into the media industry, particularly in the areas of film production, digital marketing and gaming. The BBC and ITV both have their headquarters here, which is naturally a drawcard for startups in that space.

Health: Manchester is a renowned leader in health tech, specifically in biotech and the development of medical devices. The Manchester Biomedical Research Centre and Health Innovation Manchester both offer access to funding opportunities and guidance.

Accelerators And Incubators In Manchester

Launching a startup is no easy task, and can fail without receiving proper mentorship and resources. In Manchester, you will find a few accelerators and incubators who can offer plenty of guidance and the opportunity to network.

These are just a few of them.

UP Ventures Group: This company specialises in growing startups in the technology sector. To date, they have worked with 130 startups, raising £336m in investments.

The Landing: This is a co-working space with a startup community for the tech and media industries. Here, you will be able to connect with like-minded entrepreneurs who can support you throughout your venture.

Manchester Tech Incubator: Also a co-working space, this tech community offers mentoring and access to investors for health tech, cybersecurity, AI, blockchain and cloud-computing startups.

Innospace: This organisation is operated by the Manchester Metropolitan University, aimed at supporting startups in their infant stages with cost-effective office spaces and business advice.

Funding Resources Available

The first step to launching your startup is to securing the required funding. Whether you want to opt for venture capital or public funding, Manchester has numerous options for you to choose from.

Angel Investors And Venture Capital

While angel investors are individuals who invest their own money into startups, venture capitalists will invest on behalf of others. Both will invest in startups in their early stages who show high-growth potential.

Manchester Angels: This is a network of local investors in Manchester to provide financial support to startups.

Mercia Asset Management: This company invests in startups primarily in the tech and life sciences industries.

Praetura Ventures: Based in the North West, this venture capital firm invests in startups across the AI, gaming, health tech and cybersecurity sectors.

Public Funding And Grants

Another financing option for startups is through public funding or grants.

Innovate UK: Part of the UK Research and Innovation (UKRI), Innovate UK aims to help companies develop their products or services to achieve growth. The organisation offers funding, strategy, collaboration and resources to early-stage startups who need the support.

Northern Powerhouse Investment Fund (NPIF): This investment fund provides more than £540m in the form of micro-loans, debt finance and equity finance to small and medium sized businesses in Northern England.

How To Build A Business Network In Manchester

There are a lot of factors that play into a startup’s success, and one that shouldn’t be overlooked is networking. Manchester offers plenty of opportunities for entrepreneurs to find others in similar positions as them, or in the same industry.

Startup Grind Manchester: As part of the global Startup Grind network, Startup Grand Manchester hosts monthly events for startups where entrepreneurs can connect with each other or meet potential new investors and hires.

Tech Manchester: This organisation regularly organises workshops and mentoring sessions for startup founders seeking support.

Manchester Digital: For those in the tech industry, Manchester Digital is a trade association who runs tech conferences and meet-ups for entrepreneurs to network with each other.

Should You Launch A Startup In Manchester?

There is no shortage of startup opportunities in Manchester, and the extent of support and funding opportunities available is certainly a drawcard for entrepreneurs.

This is especially relevant to those who are looking to innovate the tech, media and health spaces, where Manchester provides the ideal foundation to grow successfully.

Best of luck!