Technology transactions are continuing to drive UK M&A activity, as evidenced in Experian’s latest MarketIQ Report for Q1 2025.
The strength of the sector was also clear at April’s Northern Tech Awards, both in the North of England and across the rest of the UK, where it was fantastic to see eight of our portfolio companies make the Top 100 list.
From an investment perspective, we see significant opportunity across the technology ecosystem, with PropTech, cybersecurity and EdTech standing out as three particularly exciting areas in the North at the moment, for several reasons.
Transforming the built environment
PropTech is supporting a fundamental shift in the property sector, with innovation increasingly focused on improving the tenant experience, accelerating progress towards net zero and driving operational efficiency. The opportunity for PropTech to help address challenges within the UK real estate sector is significant.
As tenant expectations continue to rise, experience has become a top priority. Landlords and developers are turning to technologies that simplify interactions, enhance comfort and increase transparency. From smart access systems to digital service platforms, PropTech businesses are redefining how occupants engage with buildings and their landlords.
UniHomes, a student accommodation platform in which we invested in 2023, is a good example of this. The business connects students with all-inclusive properties to help them find their ideal university ‘home from home’, while at the same time helping letting agents to streamline enquiries and fill their portfolios through platform integration.
Another area of interest is the push towards net zero as well as mounting cost pressures across the property sector are driving the development of smart, AI-enabled building technologies that reduce emissions, streamline operations, and boost efficiency and asset value.
PropTech businesses that can measure and enhance environmental and social impact are well positioned to support compliance and deliver long-term value, making them increasingly attractive investment opportunities.
A strong example is BCIS, the leading independent provider of construction data to the built environment and insurance sectors, in which we invested in 2022. Its development of the Built Environment Carbon Database, a programme set to become the primary resource for carbon estimating and benchmarking in the construction industry, demonstrates the vital role such platforms can play in supporting a lower-carbon future.
A revolution in learning
We continue to see huge demand for EdTech in the education sector, as technology is enabling more personalised and flexible learning experiences, supporting both classroom-based learning for young people and the upskilling of professionals in fields such as healthcare. According to The Data City, there are more than 1,300 EdTech companies in the UK today, and more than £807m already invested in the sector.
At the heart of this evolution is AI, which is tailoring content to individual needs, supporting educators with lesson planning and assessment, and improving overall classroom productivity. As the use of data in education expands, so does the importance of trust, privacy and regulatory compliance, driving demand for platforms that combine innovation with robust data protection.
Must-have technology
Meanwhile, cybersecurity has become a strategic priority as businesses grow more dependent on digital infrastructure and the UK cyber security sector is an increasingly strong growth market. According to the latest government figures, the sector generated revenue of £13.2 billion in 2024, up 12% year-on-year.
Intelligent, real time threat detection is now essential for business resilience, particularly amid increasing regulatory scrutiny and reputational risk. Cybersecurity providers are responding to the challenge with AI-powered tools and real-time monitoring systems that improve operational efficiency and decision-making. With the need for cyber security services only set to increase in the years ahead, this translates into an attractive market for investment, and a focus on identifying those companies with a differentiated product and the ability to scale.
Powering long-term impact
What unites these diverse areas of the technology industry is not just innovation, but a shared focus on solving real-world problems. By creating impact, these businesses are paving the way for a stronger, more future-ready economy.
We’re optimistic about what’s ahead. With the right support, strong leadership, and long-term value creation, we believe the UK’s technology businesses – and the people driving them – will continue to lead the next wave of innovation and growth.