Venture capital investment in Yorkshire’s start-up and scaling businesses increased in the second quarter of 2025, against a muted national backdrop, according to the latest KPMG Private Enterprise Venture Pulse report.
Yorkshire’s start-ups raised £50.2 million in the second quarter of 2025, compared to £33 million during the same period last year – a 52% increase as investor confidence returns to the region.
Despite total investment value decreasing by 30% quarter on quarter, the volume of deals completed in the region rose from nine in Q1 2025 to 16, highlighting increased appetite among VC investors looking to support Yorkshire’s burgeoning start-up community.
The largest raise included a £11.2 million investment in White Label Loyalty, a marketing platform operator intended to help businesses acquire, understand, engage, and retain customers.
White Label Loyalty was amongst the other business services and productivity startups in the region that attracted the highest level of VC investment this quarter, reflecting growing venture capital interest in startups focused on improving operational efficiency and productivity.
Giles Taylor, head of corporate finance in Yorkshire at KPMG UK, said: “It’s encouraging to see Yorkshire continue to outperform expectations in a challenging funding environment, with the region securing more VC deals than any other region in the North of England.
“This momentum reflects the strength of our entrepreneurial community and the supportive ecosystem around it. In particular, we’re seeing growing investor interest in the region’s business productivity start-ups – companies offering smart, efficiency-led solutions that help organisations better manage costs and maintain profitability.
“In the current economic climate, that kind of innovation is not just valuable, it’s essential. It’s further evidence that Yorkshire is becoming a go-to destination for investors seeking resilient, high-potential businesses.”
