May 2023
Regional tech report:
West Midlands
part of the West Midlands Tech Review 2023
Sponsored by
Produced in partnership with City Road Communications
May 2023
Regional tech report:
West Midlands
part of the West Midlands Tech Review 2023
Sponsored by
Produced in partnership with City Road Communications
Contents
JUMP TO A SECTION THAT INTERESTS YOU
Contents
JUMP TO A SECTION THAT INTERESTS YOU
Foreword
Introduction from our sponsors
West Midlands tech in numbers
Ecosystem overview
West Midlands’ key tech hubs
Stakeholder view
Tech decision-maker view: data snapshot
Strengths, challenges and opportunities
Startups and scaleups to watch
Company spotlights
Investor focus
Digital skills bootcamps: how the West Midlands is leading the way
What next for West Midlands tech?
Thanks to our sponsors
Martin Ward
West Midlands Tech Commissioner
FOREWORD
The West Midlands tech sector is thriving, reflecting the powerful entrepreneurial spirit in the region. Our tech ecosystem is worth over £15bn to the economy, demand for tech jobs has surged by over one-third in the last year and new tech ventures are being minted at a blistering pace.The last few months alone have seen a host of positive developments that reflect our growing confidence as a tech powerhouse: examples include the £250m Mindforge fund for early-stage IP-rich ventures, the £50m West Midlands Co-invest fund that brings together public and private money to boost high-potential ventures, and the £33m Innovation Accelerator program to help the region become a global centre for research and development.
Add to this the continued success of local ventures to attract significant funding, the numerous awards that have been won and the host of innovative and creative businesses coming into the region, and we have unstoppable momentum.
Our strategic challenge now is to build on this momentum to become the global force in tech we deserve to be. The agenda has to be one of collaboration: working together positively to connect the parts of a complex ecosystem, amplify all the great work being done across private, public and third sectors, and lay the foundations of transformational change in tech skills, business support and investment. There is
much work to do, but we are on the way.
This is a hugely exciting time for tech in the West Midlands. We have a fantastic skills base, spearheaded by our world-class universities, a rich and diverse set of tech capabilities and, perhaps most important of all, the ambition to be a global player. The next few years present us with a unique opportunity to play a decisive role in making the UK a science and technology superpower. It is truly an honour to be
part of the journey.
Introduction from our sponsors
We are delighted to be sponsoring this report which is shining a light on the West Midlands. For HSBC, the Midlands has played a key role in our history, having been home to the bank for many years. The first branch was opened here in 1836, and we chose to locate our UK head office in Birmingham in 2018 in recognition of the fact it is a dynamic and entrepreneurial region, offering an attractive home for businesses at the heart of the UK.
We are excited and delighted with the report's findings, which position the West Midlands as a welcoming force for innovation, inclusivity, and most importantly for growth. The days of the UK's tech sector being firmly within the M25 are most certainly over, and we have seen first-hand how the tech ecosystem has moved from strength to strength over the years.
The West Midlands was at the core of the last industrial revolution and is well equipped to be at the heart of the next, with a strong and digitally native workforce, internationally renowned universities, and entrepreneurial spirit. HSBC has a long history of supporting growth and innovation. The tech sector has always been and remains a strategic priority for HSBC UK. Our recent acquisition of SVB UK demonstrates our commitment to supporting the high-growth ecosystem. Together we look forward to opening up a world of opportunity for even more businesses in the UK and across the world.
 |
Roland Emmans |
 |
The West Midlands is home to an array of impressive technology businesses that are driving innovation and positioning the region as one of the fastest-growing tech and digital economies outside of London. At BGF we have invested over £600m in the region since we launched in 2011 and a significant portion of this capital has
gone to supporting technology businesses.
Our team is always on the lookout to partner with ambitious businesses, providing them with the strategic support and capital to compete on a global stage. BGF is now one of the largest and most experienced investors on a national scale. However, we're also hyper-local with a network of 15 regional offices, including our West Midlands team office in Birmingham. This approach provides local businesses with access to a powerful BGF ecosystem, supporting national and international
expansion through our relationships, collaborative culture and proven experience.
We're committed to driving growth and value creation in our portfolio and we look
forward to backing many more exciting tech companies now and in the future.
|
|
Aaron Baker
|  |
Many businesses are facing challenging operational and funding conditions that can inhibit growth. We believe that in the West Midlands, collaboration and building a culture of togetherness and providing an infrastructure that supports entrepreneurship is vital. As a firm, we have been committed to supporting dynamic, fast-growing businesses in the West Midlands for nearly 190 years - helping our
clients to navigate choppy waters and ensure their continued success.
The West Midlands has an impressive track record of leading and driving growth, whether it be its role in an industrial revolution or the recent success of delivering the successful B2022 Commonwealth Games during a pandemic. The region has grit, resilience and shed loads of talent, and with some of the world's leading higher education facilities based in the West Midlands and its reputation for innovation and leadership, we are well placed for this next phase and driving growth in the West
Midlands' tech sector.
This report and its findings can help identify the challenges and opportunities and bring together the region's tech sector to problem-solve and overcome the tough economic environment most businesses are facing. The diversity of the West Midlands is an asset for us to explore and probe further to capitalize on that diversity
of thought and its significant value.
The West Midlands Tech Review is an excellent prospectus for the region's tech market and we are delighted to put our support behind the report. We look forward to working with each of the Review's sponsors to help cement the West Midlands as
the UK's fastest-growing tech market.
 |
|
Elizabeth Williams |
With so many amazing things happening across our region's tech sector, we felt it was important to highlight and acknowledge some of them. That's why we've partnered with UKTN on this year's West Midlands Tech Review Report. It's amazing to see our tech sector go from strength to strength and this is a testament to the incredible people and organisations that make up our wonderfully diverse, vibrant
and innovative region.
The fourth industrial revolution is now well and truly underway and is transforming how we see and interact with the world. Our region was at the heart of the first
industrial revolution, and whilst the world may have changed remarkably, our ingenuity and entrepreneurial spirit remain the same. Combine this with our burgeoning tech and innovation sector, and we once again have an opportunity to
lead the way.
Together, we've already built a solid foundation and we now have the momentum to a become globally recognised tech hub. Tech companies from around the world are already choosing our region because of our amazing pool of talent and dynamic ecosystem. However, to truly achieve our full potential we must continue to work
together to create more opportunities for everyone. Our commitment to you is to invest more in our region's tech sector, providing businesses with world-class support, funding and talent. Our ask of you is to join us
on the journey and help make the region a global tech superpower.
 |
Yiannis Maos |  |
We are delighted to be sponsoring this report which is shining a light on the West Midlands. For HSBC, the Midlands has played a key role in our history, having been home to the bank for many years. The first branch was opened here in 1836, and we chose to locate our UK head office in Birmingham in 2018 in recognition of the fact it is a dynamic and entrepreneurial region, offering an attractive home for businesses at the heart of the UK.
We are excited and delighted with the report's findings, which position the West Midlands as a welcoming force for innovation, inclusivity, and most importantly for growth. The days of the UK's tech sector being firmly within the M25 are most certainly over, and we have seen first-hand how the tech ecosystem has moved from strength to strength over the years.
The West Midlands was at the core of the last industrial revolution and is well equipped to be at the heart of the next, with a strong and digitally native workforce, internationally renowned universities, and entrepreneurial spirit. HSBC has a long history of supporting growth and innovation. The tech sector has always been and remains a strategic priority for HSBC UK. Our recent acquisition of SVB UK demonstrates our commitment to supporting the high-growth ecosystem. Together we look forward to opening up a world of opportunity for even more businesses in the UK and across the world.
|
|
|
Roland Emmans |
The West Midlands is home to an array of impressive technology businesses that are driving innovation and positioning the region as one of the fastest-growing tech and digital economies outside of London. At BGF, we have invested over £600m in the region since we launched in 2011, and a significant portion of this capital has gone to supporting technology businesses.
Our team is always on the lookout to partner with ambitious businesses, providing them with the strategic support and capital to compete on a global stage. BGF is now one of the largest and most experienced investors on a national scale. However, we're also hyper-local with a network of 15 regional offices, including our West Midlands team office in Birmingham. This approach provides local businesses with access to a powerful BGF ecosystem, supporting national and international expansion through our relationships, collaborative culture, and proven experience.
We're committed to driving growth and value creation in our portfolio, and we look forward to backing many more exciting tech companies now and in the future.
|
|
|
Aaron Baker |
Many businesses are facing challenging operational and funding conditions that can inhibit growth. We believe that in the West Midlands, collaboration and building a culture of togetherness and providing an infrastructure that supports entrepreneurship is vital. As a firm, we have been committed to supporting dynamic, fast-growing businesses in the West Midlands for nearly 190 years - helping our
clients to navigate choppy waters and ensure their continued success.
The West Midlands has an impressive track record of leading and driving growth, whether it be its role in an industrial revolution or the recent success of delivering the successful B2022 Commonwealth Games during a pandemic. The region has grit, resilience and shed loads of talent, and with some of the world's leading higher education facilities based in the West Midlands and its reputation for innovation and leadership, we are well placed for this next phase and driving growth in the West
Midlands' tech sector.
This report and its findings can help identify the challenges and opportunities and bring together the region's tech sector to problem-solve and overcome the tough economic environment most businesses are facing. The diversity of the West Midlands is an asset for us to explore and probe further to capitalize on that diversity
of thought and its significant value.
The West Midlands Tech Review is an excellent prospectus for the region's tech market and we are delighted to put our support behind the report. We look forward to working with each of the Review's sponsors to help cement the West Midlands as
the UK's fastest-growing tech market.
|
|
|
Elizabeth Williams |
With so many amazing things happening across our region's tech sector, we felt it was important to highlight and acknowledge some of them. That's why we've partnered with UKTN on this year's West Midlands Tech Review Report. It's amazing to see our tech sector go from strength to strength, and this is a testament to the incredible people and organizations that make up our wonderfully diverse, vibrant, and innovative region.
The fourth industrial revolution is now well and truly underway and is transforming how we see and interact with the world. Our region was at the heart of the first industrial revolution, and whilst the world may have changed remarkably, our ingenuity and entrepreneurial spirit remain the same. Combine this with our burgeoning tech and innovation sector, and we once again have an opportunity to lead the way.
Together, we've already built a solid foundation, and we now have the momentum to become a globally recognized tech hub. Tech companies from around the world are already choosing our region because of our amazing pool of talent and dynamic ecosystem. However, to truly achieve our full potential, we must continue to work together to create more opportunities for everyone. Our commitment to you is to invest more in our region's tech sector, providing businesses with world-class support, funding, and talent. Our ask of you is to join us on the journey and help make the region a global tech superpower.
|
|
|
Yiannis Maos |
West Midlands tech in numbers
The data shows that the West Midlands tech industry is being built on solid foundations, even if improvements are required to unlock its full potential. The West Midlands has been able to grow in many key areas, notably in the size and value of its tech sector, even overcoming macroeconomic challenges that have held back growth elsewhere in the UK.
The combined value of the West Midlands tech ecosystem in 2022 | Source: Dealroom
The number of tech incorporations in West Midlands in 2022 (25% increase from 2021) | Source: RSM UK
The 2022 year-on-year surge in hiring for the West Midlands tech industry | Source: Adzuna
The potential value added to the UK economy by 2025 from the West Midlands tech sector | Source: West Midlands Tech Review 2022
Growth in the number of fintech startups and scaleups over the last two years | Source: West Midlands tech review
Amount of VC funding raised by startups based in the region between 2020 and October 2022 | Source: Dealroom
The number of people upskilled through WMCA-backed digital skills bootcamps in 2022 | Source: WMCA
Ecosystem overview
A tech hub is only as strong as its support networks. The West Midlands has them in abundance. Here’s a snapshot of the key accelerators, investors, meetups and higher education institutions that are supporting the West Midlands’ tech ecosystem.
Agritech
Cybersecurity
Logistics tech
Advanced manufacturing
Industry 4.0
Medtech
Gaming
Telecoms
Fintech
Natwest Entrepreneur Accelerator
e4f
BetaDen
Bseen
FORWARD Accelerator
Barclays Eagle Labs
Plug & Play UK (JLR)
Creative Futures with Warwick Uni, WCC, and Mill Street
26 HT for start-up games studios
Uxplore 5G support programme with Cov Uni / WM5G
B Start-Up
STEAMhouse
The Creative ScaleUp Programme
Enterprise For Success
Bruntwood SciTech
Coventry and Warwickshire Innovation Programme
Innovation Alliance for the West Midlands
Brewin Dolphin
BEC
Scale & Connect
Sustainability West Midlands
Centre for Research in Ethnic Minority Entrepreneurship
Mill Street Exchange
Uxplore Coventry
Technology Supply Chain
Manufacturing Technology Centre
British Business Bank
Midlands Engine Investment Fund
WMCA Co-Invest Fund
Minerva Business Angels
Mercia Asset PLC
Midlands Innovation Group
Midven
BGF
UBS
Richardson Group
St James’ Place
UK Business Angels Association
Midlands Mindforge
Tech West England Advocates
Tech Wednesday
Innovation Alliance Working Groups
Tech Tuesday
BetaDen Beers
Women in Tech Birmingham
Tech Mids
EBN TechCamp 2023
Birmingham Tech Week
Mill Street Exchange Breakfast
Games Studio Monthly Round Table
Uxplore meet-ups at Cov Uni
CW Chamber MACE events
Aston University, Birmingham
Birmingham City University
University Of Birmingham
University College Birmingham
Coventry University
Harper Adams University
Keele University
Newman University, Birmingham
Arden University
Staffordshire University
University Of Warwick
University Of Wolverhampton
University Of Worcester