South Yorkshire’s tech sector has grown significantly, with its combined startup value reaching £3 billion in 2024—an eightfold increase from £370 million in 2014, according to a new report by Dealroom.

The report, launched at the South Yorkshire Tech Summit in partnership with TECH SY, highlights that pre-exit startups in the region—those not yet acquired or publicly listed—were valued at £737 million in 2024, a ninefold increase from £83 million in 2014.

Since 2020, South Yorkshire’s tech startups have secured over £200 million in venture capital funding, with 55% allocated to deep tech companies and 32% to businesses tackling climate challenges. About half of the region’s VC-funded startups develop physical tech solutions, integrating hardware like robotics and sensors with software for applications in manufacturing, logistics, and agriculture. One in six focuses on energy and healthcare.

Despite this progress, South Yorkshire startups receive less foreign investment (24%) than the UK average (55%) and lag behind similar ecosystems like Eindhoven and Ghent in overall funding.

The University of Sheffield has been a key contributor to the region’s startup scene, producing over 50 spinout companies and nearly 700 startup founders since 1990. Data from Companies House estimates South Yorkshire is home to approximately 5,000 active tech companies, employing almost 20,000 people.

The British Chambers of Commerce (BCC) is urging the UK government to address critical infrastructure issues to support economic growth. A new BCC report calls for road and rail capacity investment, regional transport projects, and improved grid connectivity. It also stresses the need for long-term policy stability and better planning capacity to restore business confidence, which was shaken by the cancellation of HS2’s later stages.

The report highlights widespread concerns among business leaders. Two-thirds (66%) feel their input is ignored in local infrastructure decisions, rising to 81% for national projects. Additionally, 62% say local bus and tram networks are inadequate, affecting workers’ commuting ability.

The BCC has launched an initiative to train and place 100 additional planners in local authorities to tackle planning delays. The report also urges the government to include business interests in the upcoming Infrastructure and Planning Bill to ensure a coordinated national strategy.

The BCC warns that uncertainty around major infrastructure projects hinders private sector investment and that reform is needed to create a stable environment for long-term economic development.

Cheshire-headquartered NWF Group, a specialist distributor of fuels, food and feeds across the UK, has acquired North Yorkshire-based Northern Energy Oil to grow its fuels distribution business.

Northern is a 42 million litre fuel distributor operating five sites in North Yorkshire, Northumbria and Lincolnshire, with a largely domestic customer base. The acquisition increases the group’s presence in the North-East of England, where NWF is currently underrepresented. Northern will increase NWF’s total fuel volumes by about six per cent on a pro forma basis.

The total consideration for Northern is £8.3 million.

In the 12 months to 31 August 2024, Northern generated revenue of £35.1 million, EBITDA of £0.6 million, profit before tax of £0.1 million and had period end net assets of £2.7 million. 

Chris Belsham, CEO of NWF Group, said: “We are delighted to announce the acquisition of Northern, which represents an excellent example of NWF’s strategy at play to consolidate the highly fragmented fuels distribution market.

“This acquisition, our first since Geoff Boorman in 2023, demonstrates our intent to pursue attractive, earnings accretive transactions, consistent with our strong and established track record. Our pipeline of potential fuels acquisitions remains active, supported by our robust financial position. I would like to welcome our new Northern colleagues to the Group.”