The rise of angel investors and the strength of the region’s deep tech companies have been revealed in a new Investment Report on the South West of England’s technology sector published today.
Tech South West has published its Q1 2025 South West Investment Briefing Report, providing a detailed analysis of investment trends, opportunities, and challenges.
Similar to the rest of the UK, with a national trend of subdued equity investment, the report reveals a challenging start to 2025, with overall technology investment in the South West falling by 40% compared to the same period last year, down to £136 million.
Despite this drop, the report highlights promising signs of regional investment growth with increasing angel investor activity – angels typically provide £10,000 – £250,000 early-stage funding to startups – and the continuing strength of deep tech.
Deep tech companies focus on developing breakthrough technologies based on years of research, solving complex scientific challenges in fields like AI, quantum computing, biotechnology, and advanced materials.
Key findings include:
- Deep tech companies in the South West represent 44% of the total value of investment made in the sector in the first quarter of 2025, showing strong potential despite current market conditions
- Bristol secured the lion’s share of regional investment at £93.6 million, while Devon (£22.9m) and Somerset (£11.8m) maintained moderate funding levels
- Seven of the 28 equity investments made in Q1 involved funders with a South West presence, signalling increasing regional investor engagement
- Significant growth in angel investment groups across the region, including new networks in North Devon, Cornwall and Cheltenham
Ben Cooper, Tech South West Director and Funding & Finance Lead, commented: “While the investment landscape remains challenging, we’re seeing encouraging signs of resilience. The emergence of new angel networks and the arrival of funds like Foresight’s £100m SW Fund signal a positive shift that could help bridge critical funding gaps for high-potential startups and scaleups.”
Tech South West is hosting a SW Tech Showcase event at Microsoft’s London headquarters later this month, with investors attending to be briefed on opportunities across the region and given copies of the report. The event will include pitches from the likes of Additive.earth, Blue Abyss, Wase and Circular 11.
The report is supported by key partners RWK Goodman, Howden Insurance, Barclays, and British Business Bank, and includes contributions from Angel Investors Bristol, North Devon Angels, SWIG, New Future Ventures, Shipshape.vc, Maven, Foresight, Michelmores, and FSE Group.
Regional and national data has been developed and sourced from Beauhurst, Tech South West’s Insight Partner.The report is free to download at: https://techsouthwest.co.uk/reports
