South Yorkshire’s Tech Investment Momentum: Q1 & Q2 2025 Highlights

The tech economy in South Yorkshire is evolving rapidly. As we assess the investment activity for the first two quarters of the year, it's clear that this region's tech sector is growing. TECH SY has been monitoring the data to get a clear picture of investment in tech companies.

South Yorkshire’s tech is on the rise

According to Dealroom's Q1 UK Innovation report, Sheffield ranked 6th in the UK for VC investment in Q1, with standout deals including £9M for Phlux Technology, £5.5M for Mobile Power (MOPO), and £4M each for Bow and Exciting Instruments. These investments helped push South Yorkshire’s total VC funding since 2020 to over £225M.

But it’s not just about the numbers. The region is seeing a new wave of founder-led investment activity. Sheffield Angels, a new investment collective including exited founders from MINA, made their first £300K investment into Sansanima - a University of Sheffield spinout tackling animal testing in medicine. Meanwhile, Venture.Community and Yorkshire AI Labs/The Digital Forge CIC are energising the deeptech and AI spaces, with a strong focus on inclusive growth.

Q2 brought more good news: Motion, a Sheffield-based care tech firm, secured £250K to scale its digital platform, and Crucible Therapeutics landed a £2.3M Innovate UK grant to develop MND therapies. MOPO also announced a strategic partnership with Octopus Energy to expand solar access in Sub-Saharan Africa.

Yet, the report also highlights a persistent gender gap. Only 6% of funded teams were female-only. TECH SY and British Business Bank are actively working to change this through our work to empower women and underrepresented founders in tech and investment.

South Yorkshire startups are increasingly attracting attention beyond the UK. While 75% of VC investment still comes from domestic sources, the region is beginning to tap into international capital, an essential step for scaling globally.

The Innovation Spine in Sheffield is becoming a magnet for high-potential spinouts and IP-rich startups. Companies like FourJaw and Exciting Instruments have received funding to expand within this zone, which is part of the UK’s first Investment Zone focused on advanced manufacturing.

With pre-exit company valuations now topping £700M and a return on investment of £7.50 for every £1, outpacing both the UK and London averages, South Yorkshire is proving it’s not just growing, it’s outperforming.

Since the initial release of the investment report for Climb25, South Yorkshire’s tech sector has continued to attract significant investment. Additional funding rounds in late Q2 and early Q3 have pushed total VC investment since 2020 to £315 million.

Notably, £99 million in VC funding has already been raised in 2025 alone, putting the region just £3 million shy of its highest-ever annual VC investment total - and we’re only halfway through the year. This surge underscores the growing confidence in South Yorkshire’s innovation ecosystem and signals a strong second half ahead.

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Check out the investment data on our Dealroom platform