From an industrial powerhouse to an iconic technology ecosystem, Manchester has come a long way and is now one of the most sought-after business locations in the country, housing numerous Tech giants like Google, Amazon, and IBM.
But it’s not just successful corporations making Manchester the exciting tech base it is today. Record-high funding, a remarkably skilled workforce, and geographical connectivity are just some of the attractions inspiring more and more tech start-ups to set up shop in this exciting location.
In this blog, we explore why Manchester is the ideal location for tech start-ups in 2024. We highlight the business and growth opportunities that lie there, making it the place for tech start-ups to be.
Access to funding
Emerging tech companies looking for a home should consider Manchester for its exceptional access to funding.
In 2022, statistics widely reported that Manchester-based tech companies raised a record-high investment of £532 million. Not only is this a 50% increase from the previous year, but it’s also the highest amount outside of London and the South East and more than some of Europe’s major cities.
This investment was secured across 116 funding rounds, most of which came from the electric vehicle charging start-up, BE.EV, which raised £110m. Other major contributors include Freedom Fibre, a high-speed fibre broadband provider that raised £84 million, and The Modern Milkman, a sustainable produce delivery company that raised £50 million.
Thanks to this incredible achievement, Manchester is now the best-funded northern tech hub, a significant factor that’s attracting more and more tech start-ups and SMEs to the city.
Access to top-class talent
Tech businesses can access a diverse pool of highly skilled, diverse graduates in Manchester, home to some of the UK’s – and the world’s – best universities.
Manchester University is among the highest-ranking institutions in the country, taking 19th spot for overall performance. More specifically, engineering is a key area in which the city’s education system performs particularly strongly.
For instance, Manchester University ranks 12th-best for Chemical Engineering, 10th for Civil Engineering, and 6th for Electrical Engineering. The University of Salford is also now the 11th-best school for Medical Technology and Bioengineering, a major improvement from its 21st position in 2023.
On top of that, you’ll also find the Greater Manchester Insitute of Technology and numerous coding schools and clubs preparing thousands of trained graduates to enter and enrich the region’s tech space. One example is Codebar Manchester, a non-profit organisation running tech workshops, and another is Code Stuff, a coding community for women and non-binary people.
If you’re looking to expand your team with new talent, fresh perspectives, and top-class qualifications, there are thousands of STEM (Science, Technology, Engineering, and Mathematics) students and passionate individuals in Manchester, ready to enrich and innovate your business. And not only are potential employees plentiful, but they are also more accessible than those in congested and competitive regions like London.
A thriving tech community
Manchester-based tech start-ups can also reap the benefits of being a part of a thriving community. According to data by MIDAS, Manchester’s inward investment agency, the city is
made up of 10,000 digital and tech businesses.
Of those, 6 are tech unicorns (private companies worth over $1 billion), many are household names (like the BBC, Jaguar Land Rover, and TalkTalk), and 1,500 are high-growth companies.
There are also several tech and creative clusters to join, such as Bruntwood SciTech. Particularly dedicated to businesses in the science and technology sectors, Bruntwood provides premium office and lab space (including coworking areas and meeting rooms), giving you access to the resources, space, and connections to grow your company – no matter whether you’re just getting started or you’ve been around for a year or two.
Enterprise City is another exciting district. Designed as a complete neighbourhood, it provides a range of facilities that allow tech professionals to live, work, and socialise in one place. As an established international brand, Enterprise City puts your tech start-up at the heart of Manchester’s talent, innovation, and networking opportunities.
If you’re considering forming your tech business in Manchester or relocating your start-up there, you can rest assured that you’ll be in good company, surrounded by experience, creativity, opportunity, and inspiration.
Geographical connectivity
Another key attraction (not just for tech, but all kinds of sectors) is Manchester’s excellent geographical connectivity. It’s close to Birmingham, Sheffield, Nottingham, Liverpool, and Leeds, some of the UK’s largest tech hubs.
London, the largest hub in the country, is also easily accessible, with a direct train taking you straight to the capital’s centre in under 2 hours. You also have Manchester Airport, the North’s global gateway, with direct flights to circa 200 destinations.
Whether you run an e-commerce business or have an important meeting to attend at short notice, Manchester offers plenty of quick and convenient travel options to keep you, your partners, clients, and customers well connected. It also means you can position your start-up among competitors and other innovators without compromising on accessibility.
Affordability
Offices
The cost-of-living crisis has impacted countless businesses across the country. This has been especially problematic for small businesses, many of which have been forced to close as a result.
On top of that, small companies generally have a tight budget to stick to. However, when it comes to finding office space, Manchester offers affordable options.
According to a report by Oktra, a workplace service provider, average office rents in Manchester city centre vary between £26 and £43 per square foot. In neighbouring areas like Salford and Southern Manchester, prices fall to around £16-29 per square foot.
Meanwhile, you can expect to pay twice as much in London, where office rents in London City come in at around £82.50 per square foot, and up to £140 if you venture into Zone 1 around Covent Garden and Mayfair.
If there’s no particular requirement for your headquarters to be in the capital, you could opt for a Manchester-based office whilst still having plenty of accessibility to London as and when needed.
Homes
Property prices are also much lower in the North. So, whether you work from home or commute to a commercial space, you can significantly cut costs by living in Manchester.
Land Registry figures show the average property price in January 2024 in Manchester was £249, 633. Meanwhile, that number more than doubled in London, with the average property priced at a staggering £517, 726.
Considering the substantial savings to be made by setting up and scaling your small business in Manchester, will you be in one of the UK’s most exciting and prosperous tech bases without breaking the bank, making this an accessible, affordable, and realistic city for tech start-ups to thrive in.
Future growth
Manchester’s remarkable achievements certainly don’t stop here. The city is set for a bright future that tech businesses can have long-term confidence in.
On top of the already-achieved milestones, the Greater Manchester Digital Blueprint report presents the following ambitions for the region’s digital sector:
- 75% of firms will be able to fill their digital and tech vacancies by 2025
- Place 95,000 people in digital and tech roles by 2026
- Improve school readiness for tech jobs by 2026 with Early Years development assessments
- Technology and sector size to reach £5.5bn by 2025 and £7bn by 2029
Furthermore, the city is committed to improving its sustainability, making it a healthier, greener, and more prosperous place to live and work.
Amenities
Manchester isn’t just a great place for business, it also features plenty of amenities and entertainment venues for you and your colleagues – whether you’re ready to switch off for the evening or you’re looking for a fun team bonding activity.
The football fans in your company will be pleased to be situated close to the Etihad Stadium, home of Manchester City FC, where they can enjoy exciting matches or a tour of the stadium. Afterwards, the perfect place to visit is the National Football Museum, the world’s largest museum dedicated to the nation’s favourite sport.
There are many other educational, historic, and cultural places to see, such as the John Rylands Library, the Science and Industry Museum, the Manchester Museum, Manchester Art Gallery, and Manchester Cathedral.
Manchester is also excellent for foodies, with an abundance of local cuisine, quick bites, and fine dining outlets – and even food and drink tours. Finally, music and theatre lovers can enjoy the Manchester AO Arena (which has the highest seating capacity in the UK), the Palace Theatre, and the Opera House.
Conclusion
From impressive access to funding to plenty of local amenities, Manchester is truly a strong contender for new tech businesses looking for a robust and invigorating place to form and evolve their companies.
Not only is it already a rich cluster of innovative businesses and ambitious, talented potential recruits, but the city is certainly continuing on an upward trajectory to long-term growth and success.
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