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The UK is home to one of the most well-funded tech sectors globally. However, there are ongoing concerns about the ambition and competitiveness of its homegrown funding landscape.
This prompted the establishment of the Business Growth Fund (BGF) in 2011. Formed by several major banks, BGF aims to enhance the flow of equity funding for British businesses and minimize funding gaps at different stages of growth.
Today, BGF is involved in various business phases, providing supportive, long-term capital to firms ranging from startups to those already listed on the stock market.
In an exclusive chat, Dennis Atkinson, co-head of early-stage investments at BGF, shares insights on the UK’s investment landscape, his company’s role in supporting the country’s economic goals, and what characteristics make a business an attractive investment opportunity.
What role does BGF play in promoting the UK’s economic goals?
BGF is essential in transforming innovation into scalable businesses in the UK and Ireland. The country generates remarkable science and early-stage companies, but the challenge lies in turning them into sustainable, commercially successful enterprises.
Our mission is to offer flexible, long-term capital and hands-on support, helping entrepreneurs transition from groundbreaking technologies to thriving companies.
Having invested nearly £5 billion across over 650 businesses since our inception, we ensure that growth is evenly spread across various regions and sectors, generating lasting value throughout the UK economy.
What insights have you gained about the UK’s startup ecosystem?
The UK shines in innovation, especially in deep tech, life sciences, and new industrial technologies. However, areas like product development and commercialization often lag behind.
Many technically proficient companies find it challenging to create a clear product that consistently addresses customer needs. This “product layer,” which connects engineering and sales, is vital.
Initially, this is often led by founders, but integrating this capability into the business can significantly enhance product-market fit and sustainable growth.
Is the UK’s investment ecosystem thriving, and what improvements would you suggest?
Overall, the ecosystem is robust, especially at the early stage where both capital and talent are available. However, there’s ongoing conversation about the need for scale-up funding.
Some believe long-term capital is lacking domestically, while others feel that top companies will attract funding regardless. The truth likely lies somewhere in between.
While capital is important, companies that forge strong teams, have clear strategies, and deliver real value to customers are the ones that gain consistent funding at all stages.
To improve, we need to ensure more companies are genuinely “fundable at scale.” This focuses on execution rather than just access to capital. Long-term capital, especially when combined with a partnership approach, can empower entrepreneurs to realize their visions while building something sustainable and valuable.
What qualities make a company attractive to BGF?
We look for firms that blend technical expertise with commercial clarity. This includes having a self-aware founding team, a strong grasp of the problem they’re addressing, and early proof that their solution effectively meets customer needs over time.
Particularly in deep tech, we invest considerable time understanding how a company can evolve from a technology or capability into a product-oriented business since this transition often presents the most risk and opportunity.
Besides AI, what sectors do you see promising for the future?
Deep tech remains one of the UK’s strongest areas, especially where scientific breakthroughs meet practical applications.
This includes fields like advanced materials, next-gen computing, life sciences, and med tech, where the UK excels in integrating leading research with robust clinical and regulatory foundations.
One notable example is our investment in OrganOx, a med tech company from Oxford developing liver preservation technology. Following multiple funding rounds, we exited last year at a $1.5 billion valuation, marking them as a global leader.
Although these businesses are often more challenging to build, they also tend to be more defensible and impactful on a global scale.
In general, the UK will continue to thrive in sectors that merge research excellence with strong commercial execution—closing that gap will be crucial for sustained success.
