Report calls for smarter tech investment

A new report has outlined key steps to strengthen investment in the North East’s growing technology sector and help local businesses reach their full potential.

The Now and Next – The Finance Needs of the North East Tech Sector report, published by Dynamo North East C.I.C., identifies the need for better access to finance and improved collaboration between investors, government and industry to drive innovation and scale.

Developed following a Dynamo Leadership Forum attended by finance and tech leaders, the report highlights that while the region has a thriving base of ambitious tech firms, many still struggle to access the tailored funding required to grow. 

It calls for a more connected ecosystem and region-specific support mechanisms to unlock the sector’s potential.

Among its recommendations are the creation of bespoke funding tools such as debt bridges and equity co-investment schemes, designed to meet the specific needs of scaling tech companies. 

It also proposes a regional finance portal to improve awareness of available support, as well as a dedicated tech investor network to connect founders with backers who understand the region’s opportunities.

The report stresses the importance of aligning public and private finance, attracting and retaining skilled talent and celebrating the North East’s tech success stories to boost investor confidence.

By implementing its recommendations, Dynamo North East believes the region can strengthen its reputation as a hub for innovation and ensure its tech businesses continue to thrive on a national and global stage.

Dr David Dunn, chief executive of Dynamo North East, said: “We are fortunate as a region to boast a fantastic community of fast-growing tech businesses, however what the leadership forum highlighted is the critical importance of ensuring those businesses can access the finance required to continue realising their potential.

“By condensing the findings into three key recommendations, all of which have been shaped by those with experience of the often-arduous process of securing funding, hopefully it acts as a framework which can help translate opportunity into sustained economic growth.

“Coordinated leadership and a collective focus on delivery will be key to driving growth and establishing the North East as a leading destination for tech investment and innovation.

“We have the talent, the businesses and the foundations to really establish ourselves as a global tech hub but to capitalise on this, we must ensure we are doing all we can to support those entrepreneurs who will be key to the sector realising its full potential.”

Kevin Beales, advisory board member at Dynamo and CEO and founder of MySalesCoach, chaired the Leadership Forum of 25 business owners and support organisations.

He added: “From a founder’s perspective, it’s not just about getting money – it’s about getting the right money, at the right time, with the right terms.

“We’ve seen so many brilliant tech businesses constrained by difficult to navigate pathways and fragmented funding options over the years, and I think what this report highlights is a clear action plan of how we can prevent this going forward.

“By implementing these recommendations, I have every confidence we can help more companies innovate, create jobs and continue to fly the flag for North East tech across the UK and beyond.”

To read the report, see here.

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