Manchester is the most exciting place to start a tech business in the UK right now according to Capital Enterprise’s latest poll of decision-makers in the sector.

In recent years, both public and private sector organisations have taken steps to create an environment that helps businesses start and scale, and this momentum is being felt right across the North West – pushing across to Liverpool, Lancaster and further afield.

We’re used to businesses citing low costs of set up as a reason for starting in the North West. But we’re increasingly seeing founders achieve success through key drivers that aren’t just cost.

Importantly, our tech talent is developing fast. At the same time as our roster of universities continues to create a robust early hire pipeline, there’s been a huge boost to the creation of tech leaders in Manchester. So, as skills are built at the senior levels, they’re also recycled back into the ecosystem.

This is also true for exited founders turned angels. We’re seeing more North West founders exit and reinvest their capital back into younger regional start-ups. Crucially, this capital is coming with operator experience and established sector networks alongside it. This circular flow is also starting to increase the diversity in our angel networks. The North’s angel networks now span a far wider range of backgrounds than we’ve seen in previous years.

And top universities don’t just produce talent in terms of the individuals that graduate, spin-outs also have a big role to play in a thriving local tech scene. Take CareLoop for instance, a University of Manchester health tech spin-out that we recently supported to raise a £1.8 million funding round. Combining two of the region’s top strengths, technology and life sciences, the platform offers digital support to patients struggling with mental illness.

It’s important to highlight that homegrown tech talent doesn’t thrive on its own – the application of sector expertise is facilitated by the ongoing evolution of skills in supporting roles like people, marketing, finance and sales.

While slightly more difficult to put your finger on, working with founders every day at Praetura Ventures, makes you acutely aware of Manchester’s (and the North West’s) industrious spirit and ability to seek out innovation.

A close-knit regional founder ecosystem means that founders push each other to keep raising the bar, benefitting from their proximity to other innovative businesses. Perhaps it’s a scrappy, Northern start-up mentality, but ultimately, players in the community genuinely want to see their peers succeed and readily offer them support and insight to give them a leg-up.

Finally, the benefits of a progressive and supportive public sector cannot be ignored. Whether it’s funding or business support, there are a significant number of organisations who share the same mission of helping the North West reach its full potential.

At Praetura, we’re proud to manage the NPIFII – Equity North West fund for the British Business Bank and the GMC Life Sciences Fund By Praetura for Bruntwood SciTech, GMCA & Enterprise Cheshire & Warrington. These funds are focused on fuelling growth for our most promising businesses, allowing them to benefit from collaborative public sector funders who are willing to put patient capital into the startup economy, precisely because they understand its power.

All of these factors are what makes an ecosystem exactly right, complementing each other to create an environment that encourages growth. The task now is seizing on the momentum and cementing the North West’s place as the place to start and scale a tech business.