A Guide To Newcastle VCs Investing In Early Stage Startups

Newcastle, in a business perspective, is known for its rich industrial and shipbuilding heritage and has recently become a hub for tech, the arts, and high academic standards. The city attracts many investors, eager to be a part of the next big thing.

In fact, the largest sectors in Newcastle are the education and health services⁩ industries, which accounts for ⁨25.76⁩% of ⁨employees, business services at 19.19⁩%, as well as ⁨professional, scientific, and technical services⁩ at ⁨9.38⁩%, according to Metroverse.

Here, we take a look at the VC firms in Newcastle that could be the perfect fit to help fund your next venture.


Why Is Newcastle Appealing To Investors?


Newcastle is a supportive startup environment and offers entrepreneurs resources, mentorship networks and networking opportunities. This helpful infrastructure rewards startups with favourable associations in terms of investment. It can also be particularly useful to startups as it can help them adequately prepare to potentially receive funding.

Startups have access to a talented workforce in Newcastle as the universities there produce a steady stream of graduates ready to start their careers. This can strengthen startups internally and ensures work of high quality.

Newcastle is also an attractive area for startups to root themselves as office space, salaries, and other operational expenses is cheaper than in London, which can majorly benefit early stage startups with tighter budgets.


How Do Startups Use Funding?


Funding can support startups in many ways, and businesses will allocate the funds they receive to drive growth and increase profitability. Funding can be used, for example, to purchase assets and equipment, expand operations, scale teams or to invest in research and further development.

Startups essentially apply for funding to help them grow and streamline operations until the businesses is profitable enough to carry its own weight and no longer needs an external stream of income aside from the profits they generate. Companies usually seek funding in the early stages of their journey, and can include the funds founders invest themselves.

Businesses can acquire funding by successfully applying for venture capital or growth funds, or by partnering with investment schemes and crowdfunding campaigns. support startups


Does The Government Help With Funding?

The UK government has a scheme in place that can provide startup funding. Startups can apply for government funding on the government’s website, where there is a portal that allows them to create an account and submit the necessary documentation.

The government then performs a credit check if the applying company is eligible, and if they have been approved they will be assigned to a Delivery Partner and have access to a business advisor who will be of further assistance.

The business advisor will also be required to review the company’s business plan after it has finalised its application. Once the strength of the business is assessed, the advisor will determine the affordability of the loan.

Finally, after the application is complete and the loan has been approved, the government will provide funding and support which is available for the company to use for the following 12 months.


 Newcastle VCs Investing In Early Stage Startups


Northstar Ventures




Northstar Ventures partners with founders who target high growth markets in healthy ageing, the future of work and learning, the future of place and climate tech.

Northstar Ventures is dedicated to helping startups on a financial and social level and believe that the startups they work with can be scaled to drive change globally.


North East Fund


North-East fund


The North Fund invests in companies based in Tyne & Wear, Northumberland and County Durham. They have multiple funds in place to help early stage and scaling businesses drive innovation and impact in their markets.

The North East Fund’s team can provide guidance on how their funds can help businesses and how other sources can support businesses across the region.


Maven Capital Partners




Maven Capital Partners is a private equity firm that specialises in providing essential capital and expertise to early stage startups.

Maven supports startups through different funding channels, including venture capital trusts, private equity investments, and specialist regional funds.


DSW Ventures




DSW Ventures is a venture capital firm focused on providing investments to early-stage and startup businesses in under-funded regions of the UK, including Newcastle.

They provide support to their portfolio companies, attending board meetings, helping build management teams, and acting as catalysts to drive growth.


Mercia Ventures




Mercia Ventures is an asset management firm that provides venture capital, private equity, and debt financing ranging from £100,000 to £10 million to growing businesses across the UK.

They not only provide capital investment to early-stage startups, they also provide the knowledge and expertise of their high-quality network.


Innovation Super Network




The Innovation Super Network supports innovative businesses in any sector and at any stage, from the earliest stages to scaling their business globally.

They also help startups understand the funding opportunities available in the North East, how to prepare for funding and advise when the best time would be for these companies to seek investment.