The value of South Yorkshire鈥檚 tech sector has grown by more than 700% in the last decade, according to a new report from data provider Dealroom that will be launched today at the South Yorkshire Tech Summit.
Dealroom鈥檚 report, published in partnership with TECH SY, a project to scale up the South Yorkshire tech and digital economy on behalf of the South Yorkshire Mayoral Combined Authority, revealed that the combined value of South Yorkshire鈥檚 tech startups was 拢3bn in 2024.聽
This is eight times higher than in 2014, when South Yorkshire鈥檚 tech economy was worth just 拢370m.聽
The value of pre-exit startups in South Yorkshire, which have not yet been acquired or floated on the stock market, was 拢737m in 2024. This is nine times more than in 2014 (拢83m).
Since 2020, tech startups in South Yorkshire have raised over 拢200m in venture capital funding. More than half of this (55%) went to deep tech startups pioneering entirely new products based on engineering innovations and scientific advances.聽
A third (32%) of the funds was raised by companies using technology to tackle the climate crisis.
Out of more than 100 tech startups in South Yorkshire that have raised venture capital funding, around half are developing physical tech, combining hardware such as robotics and sensors with software to create applications used in industries like manufacturing, logistics and agriculture.聽
One in six startups is focused on opportunities in energy and health.
Despite progress, South Yorkshire鈥檚 startups appear underfunded compared to those in comparable ecosystems such as Eindhoven and Ghent, which have a similar mix of specialisms and comparable populations. South Yorkshire startups also receive a lower proportion of funding (24%) from foreign investors compared to the UK as a whole (55%).
The University of Sheffield has become a crucial breeding ground for entrepreneurs, producing over 50 direct spinouts and almost 700 startup founders since 1990.聽
Data from Companies House, the register of British companies, indicates there are now around 5,000 active tech companies in South Yorkshire. It is estimated that they employ almost 20,000 people.
Oliver Coppard, Mayor of South Yorkshire – who featured on our Northern Leaders list last year – commented: 鈥淗ere in South Yorkshire, we are pioneers. We led the world into the first industrial revolution, and we’ll do the same with the tech revolution.聽
鈥淲e have the world-leading businesses, the agile tech startups and the people to create good growth for our communities. This report highlights how our heritage is shaping our future. The work of TECH SY and others will help us work with our northern partners to drive innovation and build a bigger and better economy in South Yorkshire.鈥�
Tracey Johnson, Project Director for TECH SY, said: 鈥淪outh Yorkshire is evolving from its industrial roots to a dynamic hub of tech and digital innovation.
鈥淥ur established industry strengths, skilled workforce, research facilities, place in the UK鈥檚 Northern Triangle and proximity to Europe鈥檚 largest tech hubs are driving sustained growth in the value of the home-grown startup base and attracting innovators and investors to the region.
鈥淪outh Yorkshire is one of the most welcoming and collaborative places on the planet for startups, and we are working hard to make it the best possible entry point into the global tech economy.鈥�
Orla Browne, Head of Insights at Dealroom.co, commented: 鈥淪outh Yorkshire is fast emerging as a key player in the North鈥檚 thriving tech ecosystem. With a strong foundation in deep tech and physical tech, and an increasing number of venture-backed startups, the region is proving its ability to scale and attract investment.聽
鈥淭he 拢3bn ecosystem value and significant growth in VC-backed companies highlight the momentum building here. While challenges remain in scaling and securing investment, the region鈥檚 collaborative approach, world-class research institutions, and growing investor interest position it for long-term success.
鈥淭he insights from this report showcase a dynamic and ambitious tech landscape that is only set to grow.鈥�