Barclays: 13,900 high-growth UK firms could need greater access to follow-on funding by 2035 as regional capital corridors emerge
New analysis from Barclays Eagle Labs and Beauhurst reveals the number of high-growth companies yet to secure a second equity round could rise by 76 % over the next decade if recent patterns in follow-on investment continue. The findings highlight the need to unlock the UK’s existing regional strengths by linking high-growth clusters more effectively and connecting businesses to the capital they need to scale.
This means the number of active high-growth companies yet to secure a second equity round within the typical timeframe for their area could increase from around 7,900 in 2025 to approximately 13,900 by 2035 if recent patterns in follow-on investment continue. Outside of London, this could increase from around 4,600 to approximately 8,300, an increase of more than 80 %.
Manchester, Leeds, Newcastle and Belfast already record strong employment growth following a first equity investment, but businesses in these areas typically secure fewer subsequent rounds than companies based in established hubs such as London.
This becomes increasingly important as businesses scale and require larger rounds of capital. In 2025, the median UK-only equity deal was £0.49m, compared with £5.77m for foreign-only investment and £6.30m where UK and international investors invested together.
High-growth businesses are emerging across the UK
The research also reveals Oxford, Aberdeen and Cambridge – not London – have the UK’s highest concentrations of high-growth businesses, with Aberdeen’s position underlining that high-growth activity extends beyond the more established university-led clusters in the South East. Bristol, Belfast, Newcastle, Cardiff and Leeds also outperform relative to the size of their local business populations. Oxford’s concentration was 83 % above the UK average across 2016 – 2026, while London ranks 14th relative to the size of its business base, highlighting the scale of the opportunity beyond the Capital.
How second-round funding opportunity could grow across key regional economies by 2035
| Number of active companies that have raised one round of funding and passed the typical local interval for a second | |||
| Region | 2025 | 2035 | Percentage increase |
| Manchester | 318 | 569 | 79 % |
| Oxford | 115 | 195 | 70 % |
| Cambridge | 175 | 304 | 74 % |
| Aberdeen | 52 | 98 | 89 % |
| Bristol | 132 | 241 | 83 % |
| Leamington Spa | 50 | 96 | 92 % |
| Across the UK | 7,900 | 13,900 | 76 % |
Turning regional potential into sustained growth requires stronger connectivity between ambitious businesses and the right expertise, capital and networks. Through Backing Britain’s Future, Barclays is helping businesses go from idea to IPO, with a commitment to support 1.5 million businesses and entrepreneurs by 2030. As part of this work, new Regional Leadership Boards bring together expertise from across the bank to help translate regional strengths into growth, alongside £22bn available through the Business Prosperity Fund for eligible new and existing clients seeking lending or refinancing for growth projects.
Stephen Brown, head of Barclays Eagle Labs, said: “High-growth businesses are emerging in every nation and region, often building on the distinctive industries, institutions and expertise around them.
“The challenge is helping more of these businesses convert early momentum into long-term scale. That means creating a stronger funding ladder, strengthening the investment corridors that connect regions, sharing the lessons from successful growth clusters more widely, and opening the door to larger domestic and international pools of capital.
“If we get that right, more businesses will be able to grow in the places where they started, creating skilled jobs, attracting investment and spreading regional prosperity across the UK.”