Bristol's Top Sectors: Fintech & Deep Tech Highlighted by Founders

The U.K.'s Rising Prominence as a Tech Hub

The United Kingdom is experiencing increased recognition as an ideal location for launching technology companies. Investment in the tech sector is rapidly approaching levels seen in China, with venture capital investments reaching a record $15 billion in 2020, as reported by TechNation.

Despite global health challenges, London continued to be a preferred destination for investors. U.K. cities comprised one-fifth of the top 20 cities in Europe, with Oxford, Dublin, Edinburgh, and Cambridge gaining prominence throughout 2020.

Bristol: A Growing Tech Investment Destination

Bristol distinguished itself as particularly attractive to tech investors in the previous year. Businesses located there secured an impressive $414 million in funding during 2020, establishing it as the third-largest U.K. city for tech investment.

Furthermore, Bristol boasts the highest concentration of fintech startups per capita outside of London, according to Whitecap’s 2019-2020 Ecosystem Report.

The city’s ranking among the leading smart cities in the U.K. is a result of collaborative modernization efforts undertaken by both its public and private sectors. This has attracted numerous tech entrepreneurs.

Its convenient proximity to London provides founders with a more cost-effective base of operations while still allowing access to the capital’s extensive financial resources. The University of Bristol is also home to Europe’s largest robotics department.

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Bristol is also the location of SETsquared, a significant startup accelerator. This accelerator is a joint initiative of the universities of Bath, Bristol, Exeter, Southampton, and Surrey.

To date, SETsquared has provided support to over 4,000 entrepreneurs, assisting their startups in raising a collective total of £1.8 billion. Additional support organizations include the newly established Science Creates VC fund, founded by entrepreneur Harry Destecroix, and TechSPARK Engine Shed.

Notable Bristol-Based Startups

Key emerging startups originating from Bristol include Graphcore, Open Bionics, Ultraleap, Immersive Labs, and the autonomous driving company, Five.

To gain a comprehensive understanding of the tech ecosystem and investor perspectives within the city, a survey was conducted involving founders, leaders, and executives actively involved in fostering Bristol’s startup environment.

The survey findings indicated a thriving landscape of renewable, zero-carbon, and fintech startups. Robotics, VR, bio-technology, quantum computing, digital technologies, and deep tech are also demonstrating considerable potential.

Regarding investment, while Bristol possesses a strong angel investor network, the city currently lacks substantial institutional venture capital. However, its close proximity to London mitigates this issue.

The following individuals were surveyed:

• Coralie Hassanaly, innovation consultant, DRIAD
• Pete Read, CEO and founder, Persona Education
• Kiran Krishnamurthy, CEO, AI Labs
• Simon Hall, director, Airway Medical
• Ben Miles, CEO, Spin Up Science
• Rupert Baines, ex-CEO, UltraSoC
• Mathieu Johnsson, CEO and co-founder, Marble
• Chris Erven, CEO, KETS Quantum Security

Coralie Hassanaly, Innovation Consultant at DRIAD

In what technological areas does Bristol’s tech ecosystem demonstrate particular strength? What developments generate the most enthusiasm for you? Where are the existing gaps?
Bristol excels in the fields of renewable energy and zero-carbon technologies, alongside advancements in financial technology and robotics. A noticeable area for improvement lies within the realm of Industry 4.0.

Could you identify some of the most compelling startups currently operating in Bristol?
Notable companies include Graphcore, LettUs Grow, Open Bionics, Ultraleap, and YellowDog.

How would you characterize the tech investment landscape in Bristol? What are the primary areas of investor interest?
Currently, a significant portion of investment appears to be directed towards companies within the fintech sector.

Considering the increasing prevalence of remote work, what impact do you foresee on Bristol’s population? Will residents remain, or will there be an outflow? Conversely, will the city attract new inhabitants?
Bristol provides an appealing balance between the vibrancy of a major urban center – and its proximity to London – and convenient access to attractive rural landscapes. The rise of remote work is anticipated to draw new residents to the city in the coming years.

Who are the influential individuals driving the startup ecosystem in Bristol? (e.g., investors, founders, legal professionals, designers)
Key figures include Aimee Skinner, Abigail Frear, and Stuart Harrison.

Looking ahead, what is your vision for the future of Bristol’s tech scene over the next five years?
Bristol is poised to become the second most significant hub for innovation within the United Kingdom.

Pete Read, CEO and Founder, Persona Education

In what technology areas does Bristol’s tech community excel? What developments generate the most enthusiasm for you? What areas require further development?
Bristol demonstrates considerable strength in the fields of media and animation, educational technology, socially conscious ventures, and health and scientific innovation. I am particularly enthusiastic about edtech and its potential to positively influence the learning experiences of millions of students through online platforms. The ecosystem currently exhibits less activity within the hardware and financial technology sectors.

Could you identify some of the most promising startups currently operating in Bristol?
Notable startups include Kaedim, Persona Education, and One Big Circle.

How would you characterize the tech investment landscape in Bristol? What are the primary areas of investor interest?
Bristol benefits from a number of highly engaged tech investment networks originating from diverse sources, including university initiatives, collectives of individual investors, and technology incubators. A significant advantage is the collaborative spirit among these groups, fostering the sharing of resources, concepts, and specialized knowledge through platforms like The Engine Shed and Silicon Gorge.

Considering the increasing prevalence of remote work, do you anticipate a continued population base in Bristol, or will there be an outflow? Conversely, will the city attract new residents?
An influx of new residents is already occurring, as Bristol offers a desirable urban lifestyle combined with convenient access to the countryside and vacation destinations in Southwest England and Wales, alongside an international airport located just 20 minutes from the city center.

Who are the influential individuals driving the startup ecosystem in Bristol (including investors, founders, legal professionals, and designers)?
Key figures include Jerry Barnes of Bristol PE Club, Abby Frear from TechSPARK, Briony Phillips at Rocketmakers, and Jack Jordan-Connelly representing SETsquared.

What is your vision for the future of Bristol’s tech scene over the next five years?
Given the current rate of growth and the substantial support available, the tech scene is poised for significant expansion, attracting increased investment and gaining greater prominence on the global stage within the next five years.

Kiran Krishnamurthy, CEO of AI Labs

In what industries does Bristol’s technology community excel? What developments are you finding particularly stimulating? What areas require improvement?
Bristol’s tech landscape demonstrates considerable strength within the aerospace and defense industries. The potential for extensive digital transformation, facilitated by AI, within these sectors is a source of great enthusiasm. A primary challenge, however, lies in the relatively slow rate of adoption of new technologies, a situation exacerbated by the recent pandemic.

Could you name some of the most promising startups currently operating in Bristol?
Graphcore and YellowDog are both companies of significant interest.

How would you characterize the investment climate for technology ventures in Bristol? What are the primary areas of investor interest?
In comparison to the national average for the U.K. tech sector, Bristol exhibits a lower percentage of well-established businesses (4% compared to 8%). Conversely, it features a greater concentration of companies in the seed funding stage (42% versus 37%) and a higher rate of business failure (21% versus 17%). This indicates a notably youthful and dynamic ecosystem.

Considering the increasing prevalence of remote work, what impact do you foresee on Bristol’s population? Will residents remain, or will there be an outflow? Conversely, will the city attract new inhabitants?
An influx of individuals relocating from London to Bristol is plausible, driven by the city’s convenient transportation infrastructure, robust tech ecosystem, and appealing natural surroundings.

Looking ahead, what is your vision for the future of Bristol’s technology sector over the next five years?
It is entirely conceivable that Bristol could evolve into the European equivalent of San Francisco!

Simon Hall, Director at Airway Medical

In what technological areas does Bristol’s innovation community excel? What gaps currently exist? Bristol demonstrates significant strength within the medtech, veterinary science, and industrial technology fields.

Considering the increasing prevalence of remote work, how do you anticipate this will affect Bristol’s population? Will residents remain, or will there be an outflow? Conversely, will the city attract new inhabitants? An influx of new residents has already been observed.

Could you identify prominent individuals driving the startup landscape in Bristol? This includes investors, founders, legal professionals, and designers. SETsquared plays a crucial role in this ecosystem.

What is your vision for the future of Bristol’s technology sector over the next five years? Substantial expansion is projected within the next five years.

Further Considerations

The continued development of Bristol’s tech scene relies on fostering collaboration between established companies and emerging startups.

Investment in infrastructure and talent development will be essential to support this anticipated growth.

Key Takeaways

• Bristol’s tech ecosystem is particularly robust in medtech, veterinary, and industrial sectors.
• The shift to remote work has, thus far, resulted in an increase in the city’s population.
• SETsquared is a pivotal organization supporting Bristol’s startup community.
• Significant growth is expected in Bristol’s tech sector over the coming five years.

Maintaining a competitive edge will require ongoing innovation and adaptation to evolving market demands.

Ben Miles, CEO, Spin Up Science

In Bristol’s technology landscape, which industries demonstrate particular strength? What developments generate the most enthusiasm for you, and conversely, where are the notable gaps?
A deficiency in entrepreneurial drive amongst research personnel hinders the creation of deep tech spin-off companies originating from the city’s prominent universities. However, we are greatly encouraged by the significant increase in activity and the evolving culture of innovation observed over the last two years.

Could you highlight some of the most compelling startups currently operating in Bristol?
Rosa Biotech, Albotherm, and CytoSeek represent particularly interesting ventures.

How would you characterize the tech investment community in Bristol? What are their primary areas of interest?
Investment strength is currently moderate in areas of shallow tech, but remains underdeveloped when it comes to deep tech opportunities.

Considering the increasing prevalence of remote work, do you anticipate a continued population base in Bristol, or a potential exodus? Will the city attract new residents?
An influx of new residents is currently being observed.

Who are the pivotal individuals driving the startup ecosystem in Bristol – encompassing investors, founders, legal professionals, and designers?
Key players include Spin Up Science, Science Creates, and the Science Angel Syndicate.

Looking ahead, what is your vision for Bristol’s tech scene in five years?
We foresee a robust deep tech sector, supported by a dedicated local network of entrepreneurs, incubators, and investors.

Rupert Baines, Former CEO of UltraSoC

In what technology areas does Bristol’s tech community excel? What developments are you finding particularly promising? What gaps currently exist?
Bristol demonstrates significant strength in the field of wireless technologies, including 5G and 60 GHz applications. Furthermore, the city is a hub for semiconductor development, particularly concerning processors, artificial intelligence, machine learning, and parallel processing architectures. Robotics and other advanced, technically intensive fields also flourish here.

Could you identify some of the most compelling startups operating within Bristol?
Several companies stand out, including Graphcore, Ultraleap, Blu Wireless, and Five AI.

How would you characterize the investment landscape for tech companies in Bristol? What are the primary areas of investor interest?
The availability of investment capital is somewhat constrained. While angel investors are present, there is a relative scarcity of funds specifically focused on local ventures.

Considering the increasing prevalence of remote work, how do you anticipate this will impact Bristol’s population of tech professionals? Will there be a net migration in or out of the city?
The current trend is likely to continue. Bristol and Bath are highly desirable locations due to their quality of life. A substantial portion of the workforce already commutes outside the immediate area, notably to London.

Who are the influential individuals driving the startup ecosystem in Bristol – encompassing investors, founders, legal professionals, and designers?
Key figures include Nigel Toon, Simon Knowles, Stan Boland, David May, and Nick Sturge.

Looking ahead, what is your vision for the evolution of Bristol’s tech sector over the next five years?
Significant growth is anticipated, particularly in the areas of processor technology and hardware development. We can expect to see a more robust and dynamic sector emerge.

Mathieu Johnsson, CEO and Co-founder, Marble

In Bristol’s technology landscape, which industries demonstrate particular strength? What developments generate the most enthusiasm for you? And where are the areas needing improvement?
Bristol’s tech sector excels in robotics, aerospace, and renewable energy technologies. The potential for Bristol’s established aerospace expertise to foster groundbreaking companies in the future is particularly exciting. However, the availability of investment within the ecosystem itself remains a point of weakness, despite the relative proximity of venture capitalists in London.

Could you highlight some of the most promising startups currently operating in Bristol?
Notable startups include Graphcore, Ultraleap, and Open Bionics.

Considering the increasing prevalence of remote work, what impact do you foresee on Bristol’s population? Will residents remain, or will there be an outflow? Conversely, will the city attract new inhabitants?
It is my belief that Bristol’s appeal will, in fact, increase.

Who are the pivotal individuals driving the startup community in Bristol – encompassing investors, founders, legal professionals, and designers?
Tom Carter of Ultraleap and Joel Gibbard of Open Bionics are key figures.

Looking ahead, what is your vision for the evolution of Bristol’s tech scene over the next five years?
The city’s tech scene is projected to become increasingly competitive with those of London and Cambridge.

Chris Erven, CEO, KETS Quantum Security

What industries demonstrate significant strength within Bristol’s technology landscape? What developments generate the most enthusiasm for you, and what areas require further development?
Bristol possesses a robust ecosystem encompassing biotechnology, quantum technology, the digital sector, and science-based/deep tech ventures. The city’s diverse character and the innovative mindset of its inhabitants are particularly inspiring.

Could you highlight some of the most promising startups currently operating in Bristol?
Startups associated with QTEC, SETsquared, and UnitDX, including their alumni, are particularly noteworthy.

How would you characterize the investment landscape for technology companies in Bristol? What are the primary areas of investor concentration?
Investment activity is largely concentrated at the very early, or initial, stages, with a prevalence of angel investors.

Considering the increasing prevalence of remote work, what impact do you foresee on Bristol’s population? Will residents remain, or will there be an outflow? Conversely, will the city attract new inhabitants?
An influx of new residents is anticipated! The abundance of accessible green spaces, coupled with a thriving selection of independent retailers, makes Bristol highly attractive. Its proximity to London also remains a benefit.

Who are the pivotal individuals driving the startup ecosystem in Bristol, encompassing investors, founders, legal professionals, and designers?
Key players include the various incubator programs – QTEC, QTIC, SETsquared, and UnitDX – as well as the Bristol Private Equity Club and Harry Destecroix.

What is your vision for the future of Bristol’s tech scene over the next five years?
The scene is poised for significant growth and vibrancy. We can expect an increase in both innovative startups and venture capital firms establishing a presence in the city.