The city of Manchester has long been an important UK location—indeed, its role in shaping Britain’s economy dates all the way back to the industrial revolution when it took the crown as the world’s first industrial city. Now, Manchester is turning its attention to the digital revolution and is becoming one of the most successful cities in the UK for tech startups.
According to CBRE 2022, Manchester is officially the UK’s top digital tech city and is home to a £5 billion digital ecosystem. In 2022, Manchester-based tech companies raised a record £532 million in funding, the highest amount outside of London and the Southeast, and an increase of 50% year on year. Indeed over the past five years, tech businesses in Manchester have collectively secured over £1.8bn of venture capital funding.
But what is it about the city that is attracting digital organisations in their droves?
A Tech Talent Pool
Manchester is home to several universities with a focus on technology and business programmes, which provide a rich talent pool for startups. The University of Manchester is part of the prestigious Russell Group, and is renowned for its research excellence, while Manchester Met has recently won the Business School of the Year at the Educate North Awards.
Thanks to the city’s vibrant atmosphere and great standard of living, Manchester also attracts those looking to work in the tech sector from all over the UK, and indeed globally, providing a high level of tech talent.
A Digital Culture
Manchester has a vibrant tech community, with a wealth of tech events, meetups and conferences held in the city. Manchester Tech Festival (MTF) hosts over 40 events throughout the year, culminating in a week-long festival in October, while Manchester Digital offers a membership that supports the tech and digital sector in the area with a wide range of events and peer-to-peer meetings and opportunities. This provides a wealth of opportunities for networking, collaboration and learning within the city.
Government Support
The UK government has been actively promoting tech growth outside of the capital, and Manchester is a key beneficiary. The city is part of the “Northern Powerhouse” initiative which aims to boost economic growth in the North of England.
A Diverse Economy
Manchester has a diverse economy with strong sectors in media, finance and education. This provides digital startups with opportunities to find niche markets and clients. Indeed, Manchester represents the largest economy outside of London with a gross value added (GVA) of £74.85 billion.
As of February 2023, the tech sector represented around a quarter of the city’s available jobs, and there are over 1,600 startups and scaleups in Manchester, employing around 60,000 people.
Put simply, Manchester provides a fertile environment for digital startups with numerous factors positioning the city as the go-to for tech. The city’s progress as a leading digital startup hub is a testament to the city’s continuous commitment to fostering innovation and entrepreneurship.
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