South West investment overview

The term DeepTech covers any technology not focussed on end-user services, including AI, Quantum Technologies, Robotics and Biotech. Over the past few years, we’ve seen strengths within the South West across all these areas. 

AI: Very notably, Graphcore has raised £162m in equity investment in January 2021 for their AI infrastructure tools, to top up the £116m they received in 2020. 

Quantum: The University of Bristol is a centre of excellence in Quantum Technologies. Since 2016, 31 new companies have been created and over £60 million has been dedicated to developing the industry in the region. 

Aerospace : Long a haven for aerospace technology, with Airbus and indeed 14 of the 15 world-leading aerospace companies based here, Vertical Aerospace have raised £214m in 2021 to further develop their electric aviation for urban air travel, proving that this sector is as active as ever.

Robotics : Bristol Robotics lab has fostered some fabulous robotics startups over the last few years, including the incredibly impressive Open Bionics. Reach Industries and Perceptual Robotics are also ones to watch.

Biotech: In 2018 University of Bristol spinout Ziylo was acquired for around £630m, and its founder Harry Destecroix has since set up the Science Creates VC fund as well as 2 Bristol based deeptech incubators.

There are several incubators and accelerators in the region with a focus on DeepTech, including the Science Creates ones, Future Space, SETsquared Bristol, the Bristol Robotics Lab, and the National Composites Centre so plenty of support for those startups to grow.

Cyber Security is a sector that has flourished across the UK in 2020 due to the increased amount of remote working and changes in working practises. However, even prior to 2020 Cyber was a focus of the region.

Cheltenham is the home of GCHQ’s National Cyber Security Centre, attracting specialist talent to the region. A Cyber Security Operations Centre was set up in 2016 in Corsham to protect the Ministry of Defence’s cyberspace, and various startups and communities have sprung up over the past few years including Immersive Labs which has attracted £92m of equity investment, and Bristol & Bath Cyber which has been set up to bring together people of various backgrounds into Cyber.

Companies to watch include KETS Quantum Security, and of course potential future unicorn Immersive Labs.

The region is home to tech centres for large corporates such as Lloyds, Nationwide and Hargreaves Lansdown and several crowdfunding platforms including the equity platform Crowdcube.

Local scale-up Brightpearl was recently acquired by Sage in a £225m deal and recently the South West has seen a plethora of fintech startups emerge. Companies to watch in this sector in 2022 include Moneyhub, Seccl, Loqbox, Tumelo and Roqqet.

As home to Aardman Animations, the BBC Natural History Unit and Channel 4, the region has attracted some serious players, however, there is also much support available for early-stage creative companies in the West of England.

The Pervasive Media Studio, The Studio in Bath and the Centre for the Analysis of Motion, Entertainment Research and Applications all attract an international influx of early-stage companies.

Of the creative companies emerging from the region, Ultraleap, Virti, Condense Reality and Motion Impossible are standouts of recent years.