Leeds’ ambition to solidify its position as the UK’s leading financial and technology hub has been given a significant boost by the announcement of 61 high-growth innovation businesses opening offices or expanding across the city’s key business districts this year.
Following these additions, the city is fast emerging as a leading destination for tech, digital, and, in particular, fintech companies, with firms in the sector recently having been revealed to be growing 125% faster than the UK average, according to data from Leeds Digital Festival and Datacity.
The rapid growth of tech firms within the city has underscored the success of Leeds’ growing Innovation Arc, a key factor in the city’s status as the UK’s largest financial and professional services hub outside of London. Spanning multiple districts, this thriving ecosystem provides a foundation for advancements across sectors such as health tech and digital technology, fostering collaboration between these diverse industries.
The growth of the city’s fintech sector has been a key success story of the Arc, having recently been named one of the top four financial technology locations in the nation. Supported by a growing ecosystem that includes a well-established financial services sector, top universities, and a wealth of support networks, Leeds is now home to over 100 fintech firms and more than 60 established financial services companies, making it one of the UK’s most dynamic fintech hubs. The economic impact of fintech in Leeds has been substantial. As a sector it has contributed over £700 million to the Leeds economy, more than doubling its Gross Value Added (GVA) in just three years. At the same time, the number of fintech startups and scaleups has increased more than threefold since 2020, while venture capital investment has also surged, rising from £153 million in 2021 to £288 million in 2022. This investment, alongside additional support from initiatives like the Northern Powerhouse Investment Fund, is helping to drive further expansion in the sector, positioning Leeds as a vibrant hub for technology and financial services.
Organisations like FinTech North, part of the broader FinTech National Network, have contributed to this growth by hosting various events and creating opportunities for networking and collaboration within the fintech and tech sectors, helping connect members in cities across the North.
Fuelling Leeds’ growing innovation ecosystem
One key player in supporting the development of Leeds’ innovation ecosystem is Bruntwood SciTech – a joint venture between Bruntwood, Legal & General and Greater Manchester Pension Fund – who has this year invested more than £20m into its Leeds city centre innovation hubs and campuses. This includes the likes of the recently completed redevelopment of West Village, a premier location for scaling businesses, to form a network of interconnected innovation hubs that not only meet the needs of businesses at all stages of growth but also fosters collaboration and cross-sector synergies.
Key locations like these, alongside the likes of Platform – well-known as the ‘home for tech and innovation’ in Leeds – and 14 King Street, offer environments where businesses of all sizes and industries can connect, share knowledge and co-create, helping drive Leed’s position as one of the UK’s leading innovation destinations.
In the past year alone, Bruntwood SciTech has welcomed 61 new businesses across its Leeds portfolio, joining more than 150 tech, digital-savvy, and sector disruptive businesses already based there. Amongst the new arrivals are global leader insurance QBE who recently relocated to West Village for its central location and accessibility to tap into Leeds’ rich talent pool of over 70,000 graduates from its renowned universities. Avenue3, a rapidly expanding open data consultancy firm specialising in healthcare and the NHS, have established themselves at Platform to embed itself within the city’s tech community of like-minded businesses, and to benefit from its flexible workspace offering and state-of-the art facilities.
The continued expansion of businesses already based in Leeds also further underscores the city’s growth opportunities for innovation-led businesses, with many leveraging the ecosystem’s network of investors, business support mentors, accelerators and universities, alongside taking advantage of more flexible, scalable office environments. Optalysys, a leader in AI-driven hardware, and its neighbour – Hark Systems – a fast-growing energy management firm – have both this year expanded within Platform since accessing this ecosystem through Bruntwood SciTech, gaining additional investment to support their innovations in their operating sectors. Companies such as these are continuing to enhance productivity across the regional economy and, in turn, are delivering more jobs, growth and prosperity to Leeds.
Also contributing to the wider ecosystem, are a number of businesses that offer support services to the city’s growing community of tech innovators. For instance, at 14 King Street, HW Global – a leading recruitment solutions provider – provides vital executive search support to the Leeds innovation ecosystem.
The city’s increasing prominence is strengthened by its expanding fintech workforce, which grew from 6,300 professionals in 2019 to an estimated 7,800 in 2023. Nearly half of local graduates come from STEM disciplines ensuring a continuous pipeline of talent that supports technology and financial services sectors. This wealth of talent has helped to attract and retain world-leading companies, like PEXA, a world-leading technology provider, behind the world’s first digital property exchange process, that began as a start-up in the city and has now located its UK HQ to West Village to better leverage the city’s tech ecosystems. Alongside the arrival of PEXA, Swedish banking platform Vilja Solutions and Estonian bank LHV have both joined Platform to take advantage of the city’s growing expertise.
The attraction of Leeds’ city centre innovation hubs to fintechs has also been bolstered by the launch of a new strategic partnership between Bruntwood SciTech and FinTech North. The organisation, which shares Bruntwood SciTech’s ambition to grow the fintech ecosystem in the North of England, focuses on facilitating collaboration and investment into the sector.
As the UK’s largest property platform dedicated to supporting the innovation economy, Bruntwood SciTech is playing a pivotal role in shaping Leeds’ business landscape by providing cutting-edge workspace and access to a nationwide network of funders, investors and mentors. Its monthly ‘Ask the Experts’ drop-in clinics offer tailored advice on crucial topics like talent, funding, AI adoption and sustainability, while the Female Founder Incubator (FFI) at Platform supports female entrepreneurs with expert mentorship each year.
Delivered by Bruntwood SciTech, the Female Founders Incubator’s success has seen alumni expand at Platform, and has increased the number of female-led ventures in the city. A number of Bruntwood SciTech’s customers lend their support to the initiative, including Berwins Digital and Page White Farrer, whilst additional support is offered from Lifted Ventures and sponsorship from British Business Bank. The support provided is propelling Leeds’ innovation ecosystem forward, with the Female Founders Incubator having helped facilitate 90 new business introductions for the founders and helping them to secure over £200,000 in capital investment. The initiative is now running its third cohort and in October expanded into Manchester and Cheshire, bringing in 35 new founders into the FFI network.
Katrina Jones, Associate Director for Bruntwood SciTech, said: “Leeds is rapidly establishing itself as one of the UK’s leading tech and innovation hubs, and Bruntwood SciTech is proud to be at the forefront of this exciting growth. The recent opening of West Village, alongside the well established innovation communities at Platform and 14 King Street, underscores our commitment to supporting the city’s expanding tech and digital landscape. These new and refurbished workspaces are integral to fostering the connections, collaborations, and resources that forward-thinking businesses need to flourish.”
This latest announcement comes a year after Bruntwood SciTech announced an additional £500 million investment into the science, tech and innovation sector and welcomed the UK’s largest local government pension fund, Greater Manchester Pension Fund (GMPF) into the joint venture to support long-term, patient capital playing a crucial role in the growth of the domestic innovation sector.
Today, Bruntwood SciTech has £314m of investment currently underway across Leeds, Manchester, Cheshire, Birmingham, and Liverpool, and is bringing to market 1.45m sq ft of state-of-the-art workspace for innovation-led businesses; for startups through to global HQs.
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