Why the UK’s heartlands are where the real opportunities lie

By Ryan Sorby, Partner and Head of the North in Palatine’s Growth Credit team

There’s a narrative that has dominated UK tech investment for too long, which is that true innovation only happens in London, and everywhere else is catching up. We’ve never believed that at Palatine, and Climb UK’s first national tour is proof that the wider industry is recognising it too.

Our team is proud to have attended and spoken at events at Climb UK this year, as it extended beyond Leeds for the first time and headed into the heartlands of the UK, such as Newcastle, Manchester, Leeds, and beyond. For us, this isn’t just a calendar commitment. It’s a reflection of how we’ve built our business.

Every city has its own edge and nuances, and the tour has recognised that. The UK’s regional tech clusters aren’t generic – they’re distinct, and that is each region’s strength. For example, Newcastle has built a genuine global standing in Life Sciences and Healthy Ageing, underpinned by world-class university research and a growing commercial ecosystem which translates that science into scalable businesses.

Manchester’s depth of work in fintech, AI, data and digital health has made it one of Europe’s most active tech cities. Leeds, meanwhile, has become a powerhouse in cyber, legal and financial technology, with an institutional base that few cities outside London can match.

These regional businesses are consistently closer to real-economy problems, in health, industrial tech, logistics and the built environment, and the numbers reflect it with capital-efficient models, loyal workforces, and sustainable growth built on genuine customer need. And yet they remain chronically underrepresented in UK funding. That’s not a quality problem. It’s a proximity bias, and that has its consequences.

Too many great regional tech companies are disappearing, and that’s not through failure, but acquisition. Overseas corporates recognise the quality being built here, move in, and gradually the knowledge leaves. For example, facilities close, teams consolidate abroad, and jobs are lost. Without the right domestic capital, selling early becomes the path of least resistance.

That’s where Palatine comes in, through our Growth Credit strategy, providing flexible, non-dilutive debt to growth-stage tech businesses that deserve a lender who truly understands their market. Our Growth Credit Fund focusses on supporting fast-growing venture-backed tech companies based in the regions of the UK outside London.  Since launching in 2024, we have completed 11 deals from our Growth Credit Fund, with a strong pipeline for 2026 across the UK’s key regions.

To find out more about Palatine’s Growth Credit fund get in touch with our team at: info@palatinepe.com