A total of 85 deals were closed according to new data, breaking all previous records and cementing Liverpool’s position as an emerging tech hub.

The figures were revealed by Beauhurst – the leading source of data on private UK companies – to coincide with Liverpool Slush’D, the city’s biggest-ever startup conference.

The event will bring together startup founders, investors and policy-makers at Liverpool’s Baltic Triangle on 14th September with a mission to tackle bottlenecks hindering local startups from reaching their full potential, in turn unlocking exponential economic gains.

The picture painted of Liverpool’s startup scene by Beauhurst contrasts with a challenging environment globally. Venture capital funding of start-ups has plunged by more than 50 per cent in the past 12 months, as a rocky economic climate weighs on valuations at nascent tech groups.

Key Highlights from Beauhurst’s Data:

1. Record-Breaking Deals: A total of 85 equity investments were made in Liverpool-based startups during 2022 with a collective value of £93m, setting a new benchmark in the availability of venture funding in the city. Top investors included LYVA Labs and Seedrs. The milestone reflects the confidence investors have in the city’s entrepreneurial talent and potential for strong returns.

2. Diverse Investment Portfolio: The data reveals that investments span a wide range of sectors, including e-health, fintech, artificial intelligence, e-commerce, and renewable energy, among others. There is also a record number of active companies in the Liverpool City Region, with 89,300 firms registered. Beauhurst says the diversity of ventures demonstrates robustness and adaptability in Liverpool’s startup ecosystem.

3. A Magnet for Talent: Liverpool’s reputation as a home for top-tier talent is reinforced by the influx of investment capital. The region’s growing pool of skilled professionals continues to drive innovation and foster a collaborative atmosphere that empowers startups to flourish.

A Buzzing Startup Ecosystem:

The new data underscores the growing momentum behind the vision of Liverpool Slush’D to cultivate a world-class startup ecosystem in Merseyside.

Slush’D organisers argue that the city has many of the cultural characteristics that successful entrepreneurs need: pride, passion, determination and drive.

However, they say there are also historical and psychological challenges that the city needs to tackle before it can lay claim to being the entrepreneurial capital of the north.

Historically, Liverpool relied on big employers for jobs, which arguably inhibited the growth of an entrepreneurial culture. This reliance proved damaging for the city when many of its successful banking, industrial, and maritime companies moved away in the latter half of the last century. It has only just started to recover from the period of decline and sharp population drop that ensued in the 80’s and 90’s.

Yet Slush’D organisers are that despite the recent experience of decline, from a structural perspective, Liverpool has the wherewithal to become Britain’s startup city. It has relatively low startup costs, an availability of skilled labour, excellent connectivity, and a vibrant cultural offering. It has more than 50,000 students based across three universities, which helps the city’s increasingly important knowledge economy. There is also a strong political will to make Liverpool more entrepreneurial.

Jonny Clark, Director of Liverpool Slush’D, said:

“Over the last 25 years, the city region has reinvented itself as a hub for innovation and creativity. These buzzwords get thrown around a lot – but I honestly see an exceptional level of ingenuity in the businesses that are built here and this new data from Beauhurst shows the city is going from strength to strength. It’s a trend that’s not going to stop.

“I believe we can forge a new identity based on being a hotspot for young, hungry entrepreneurs and laptop nomads who want to build successful businesses and live in a truly distinct place.

“Walk around SciTech Daresbury on any weekday afternoon, or walk down Jamaica Street in the Baltic Triangle on a Friday after work and see the confluence of world-leading creativity and cutting-edge innovation underpinned by an unbeatable lifestyle offer and edgy, fearless subculture; There is your attack brand. There is your authenticity. There is your path to shared prosperity. No other place can begin to compete with us on this.”

Henry Whorwood, Head of Research and Consultancy at Beauhurst, who will be a keynote speaker at the Liverpool Slush’D conference, said:

“The data we’ve collected highlights that Liverpool is becoming a formidable player in the UK’s tech startup ecosystem. The record-breaking number of equity investments reflects the immense potential and attractiveness of the city’s startups.

“Liverpool has firmly established itself as a key destination for investors looking to support groundbreaking ideas and drive disruptive innovations.”

“In light of the recent fall in venture capital investment globally, the increase in venture capital investment into Liverpool companies is particularly welcome.

“Raising venture capital investment is always a challenge, however, as more seed companies in Liverpool continue to ‘graduate’ into growth and venture stages they can be confident that external investors are increasingly available to support their needs.”

Claire Lewis, CEO of Baltic Ventures said:

“This promising data shows Liverpool City Region’s burgeoning startup ecosystem is on the right track. We are determined to play our part by helping to scale the availability of capital to support the ambitions of startup founders in the region.”

Sponsors:

Liverpool Slush’D is made possible by the support of Baltic Ventures, KPMG, Gather, LCR Angel Network and Growth Platform.