Leeds is one of those cities that keeps surprising people. I hear founders in London talk about Manchester, Edinburgh, Bristol. Leeds doesn’t always come up in the same breath. That’s a mistake.
The numbers tell a clear story. Leeds has 205 high-growth enterprises, which puts it ahead of both Bristol and Manchester. For a city that doesn’t shout about itself as much as some of its neighbours, that’s a remarkable statistic. Something is working here, and it’s been working quietly for a while.
Why Leeds punches above its weight
Leeds has always been a financial services city. It’s the largest centre for financial and professional services outside London, with firms like First Direct, Yorkshire Building Society, and a huge cluster of legal practices. That matters for startups because it creates two things. First, a deep pool of commercially skilled people who understand money, risk, and growth. Second, a ready market for the tools and platforms those firms need.
The fintech scene in Leeds has grown directly from that heritage. Founders who spent years inside banks and insurance companies are now building the software to modernise them. It’s a pattern I see again and again in successful startups. Domain expertise plus frustration with the status quo equals a good business idea.
Beyond fintech, Leeds has a strong digital agency sector. Companies like Branded3, Epiphany, and a string of smaller agencies have trained a generation of digital marketers, developers, and product people. When those people leave to start their own companies, they bring skills and networks that are hard to replicate.
SaaS is another sweet spot. The city produces a steady stream of B2B software companies, often focused on sectors where Leeds has existing strength. HR tech, legal tech, property tech. These aren’t glamorous categories, but they’re big markets with real customers willing to pay for better tools.
The South Bank story
If you haven’t been to Leeds recently, the South Bank development will change how you think about the city. It’s one of the largest urban regeneration projects in Europe, covering over 250 hectares south of the river. New offices, housing, green spaces, and a planned new station for HS2.
For founders, this matters because it signals long-term commitment to growth. When a city is investing billions in infrastructure, it creates an environment where businesses want to be. Talent moves there, clients visit more easily, and the general energy lifts. I’ve seen it happen in other cities, and Leeds is firmly on that trajectory.
Leeds Angels and the investment landscape
Leeds Angels is the main angel network in the region. They connect early-stage companies with experienced investors, many of whom have built businesses in Yorkshire themselves. It’s a good network because the investors understand the local market and tend to be hands-on rather than passive.
There’s also activity from individual angels who invest independently, often through personal networks rather than formal groups. If you’re a Leeds founder, it’s worth getting to know the local business community. Attend Leeds Digital Festival, go to the meetups, talk to people at places like Platform and Avenue HQ. The city is small enough that you can build meaningful relationships quickly.
SEIS and EIS are just as relevant here as anywhere. If you’re raising early-stage capital, make sure your company is eligible. It makes a genuine difference to whether investors say yes. Our SEIS and EIS guide covers the details.
A Lomond portfolio company in Leeds
We practice what we preach when it comes to investing outside London. Vante Financeis a Lomond portfolio company based in Leeds, and they’re a good example of what we look for. A strong team with deep sector knowledge, a clear product-market fit, and the ambition to build something significant.
When we invested in Vante, it wasn’t because they happened to be in Leeds. It was because they had everything we want to see in an early-stage company. But the fact that they’re building their business in Yorkshire, tapping into the local talent pool and client base, is part of what makes them well positioned. Not every good company needs to be in Shoreditch.
What Yorkshire founders do well
I’ve noticed something about the founders I meet in Yorkshire. They tend to be straightforward. There’s less of the performative startup culture you sometimes see in London, less obsession with vanity metrics and PR, and more focus on building something that actually works and makes money.
That pragmatism is valuable. When a founder tells me their revenue is £15k a month and growing 10% month-on-month, I take that seriously. I’d rather hear that than a pitch about disrupting an industry with no evidence of customer demand.
Yorkshire founders also tend to be capital efficient. They’ve often bootstrapped further than their London counterparts before raising, which means they know how to get value from every pound. When we invest £100k into a Leeds company, I generally see it go further than the same amount in a London company. Lower office costs, lower salaries, and a culture that doesn’t treat venture capital like free money.
The gap and the opportunity
Despite having 205 high-growth enterprises, Leeds still receives a fraction of the angel and venture investment that flows into London. That imbalance is the gap. But from our perspective, it’s also the opportunity.
Good businesses that are slightly under the radar of the London investment community represent some of the best risk-adjusted opportunities in the UK. The valuations tend to be more reasonable, the founders tend to be more grounded, and the businesses tend to be built on real revenue rather than hype.
That’s exactly the kind of investment Lomond was built for. We invest between £50k and £250k into early-stage UK businesses, and we deliberately look beyond the usual suspects. If you’re building something in Leeds or anywhere in Yorkshire, we want to hear from you.
How to get in touch
Have a look at how we work with founders. Our process is straightforward. You tell us about your business, we have a conversation, and if there’s a fit, we move quickly. No endless committees, no death by due diligence.
If you’re ready to have that conversation, apply here. We read every application personally, and we respond to everyone. Whether we invest or not, you’ll get an honest answer.