South Yorkshire has entered a new phase of tech‑led growth, according to a new regional report.
The 2026 tech ecosystem report ‘Region on the rise: South Yorkshire’s pathway to scale’ was released today by TECH SY in partnership with Dealroom at the South Yorkshire Tech Summit 2026 in Barnsley.
The data shows the region strengthening its position as a fast‑growing innovation economy, driven by record investment rounds, a surge in university spinouts, and deepening specialisation in frontier technologies.
The report reveals that South Yorkshire’s startups are now worth £3.1 billion, with 100+ VC‑backed companies operating across the region.
Since 2020, the ecosystem has grown almost 4×, and over the past decade more than 15×.
2025 was a record year for early‑stage VC investment, with rounds up to £11M — almost double 2024 levels.
The region also recorded its strongest-ever year for Series A funding, marking a step‑change in the maturity of its startup pipeline.
Pre‑exit companies (not yet public or acquired) are now valued at over £1bn, demonstrating growing scale‑up potential.
Deep tech continues to be South Yorkshire’s strongest specialisation: attracting £121m since 2022, making it the top‑funded sector.
Transportation, ClimateTech, energy and FinTech have also emerged as fast‑growing segments, each exceeding £70m in VC funding. These align with UK industrial strategy key growth sectors and local growth plans.
The report notes that physical tech and DeepTech make up a greater share of South Yorkshire’s funding compared with the UK overall, reflecting the region’s strengths in advanced materials, engineering and manufacturing‑led innovation.
Universities accelerating commercialisation
The University of Sheffield produced a record 10 spinouts in 2025, placing it eighth in Europe for deep‑tech and life‑science entrepreneurship. Regional spinout activity mirrors a wider national shift, with innovation increasingly distributed across the UK and the North, not concentrated solely in the Golden Triangle.
Sheffield Hallam University, Barnsley College, Doncaster UTC and the new South Yorkshire Institute of Technology have been investing in education for the next generation of tech talent.
National and international benchmarking
South Yorkshire’s tech ecosystem is now tracking at a similar enterprise value to where Helsinki and Pittsburgh were a decade ago. Both cities later became globally recognised hubs in gaming, robotics, AI and advanced engineering — highlighting South Yorkshire’s potential to scale in comparable sectors.
Across the wider North of England, startups have generated over £7.1 in enterprise value for every £1 of VC invested, outperforming both the UK average and London.
Dave Richards MBE: Fronting a possible £250m Sheffield FC bid
Emerging defence and dual‑use hub
South Yorkshire’s defence and dual‑use technology sector is expanding, anchored by strengths in advanced manufacturing, materials, cyber and nuclear supply chains.
The region has been designated a priority growth area under the UK’s Defence Industrial Strategy, receiving a share of the £250m Defence Growth Deal to unlock new industrial, research and skills opportunities.
South Yorkshire Tech Summit 2026
The sold‑out South Yorkshire Tech Summit in Barnsley brings together hundreds of founders, investors, academics, industry leaders and public‑sector partners to shape the next decade of the region’s tech growth.
The Tech Summit demonstrates the region’s rising momentum and collective ambition. South Yorkshire is reaching a pivotal inflection point, with record investment, a growing spinout pipeline and emerging clusters.
The Summit provides a space for ecosystem stakeholders to align on priorities, share insights and plan the actions needed to accelerate innovation, investment, and inclusive growth across the region.
Tracey Johnson, TECH SY project director, said: “South Yorkshire’s tech ecosystem is entering a pivotal moment in its development. Our metrics show we are ‘emerging’, this reflects the upward trajectory we are seeing in terms of the number and viability of businesses, and the improved VC landscape.
“Our collaborative report helps us to understand our position in the UK and global technology ecosystem.”