South West tech network techSPARK has published its inaugural chair's report, outlining the existing conditions in Bristol and Bath's tech space.
The company, which has bases in Bath, Bristol, Swindon and Wiltshire and Wales, has analysed the recent achievements of those within the cluster, featuring over 1200 businesses across fintech, greentech, digital, cyber and deeptech, to name a few.
In addition, the report looks into how the cluster could be improved, as both Bristol and Bath grow within the tech space.
The first report of this kind highlights policymaking and political leadership, the diversity and depth of investments and venture capital funding, in addition to commenting on a collaborative culture, cementing the cluster’s identity and bridging the gaps between competition and collaboration as some of the key areas to assess.
Regional identity is one of the major strengths of the two cities, according to findings, but could be a weakness.
techSPARK chair Nick Sturge MBE said: “Bristol and Bath are passionate cities, with purpose at their hearts. But the often-cited humility of those within the tech space, may in fact be hampering growth. The level of humbleness within the space seems to be at odds with global brand building and big acquisition routes. What do we want to be known for?”
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In terms of acquisition and investment the two cities are seeing less venture funding in 2023, notably at pre-seed and early-stage levels. However, Bristol and Bath are still seeing strong equity investment levels, with a total of £975,000,000 raised in 2022.
In the past, Bristol was cited as the strongest cluster in the UK outside London for the availability of growth capital. In 2021 Atomico reported Bristol was third in Britain behind London, Birmingham and Manchester. The city went on to drop out of Atomico’s top 20 European rankings in 2022.
This is supported by success in other UK regions receiving government funding. Yet, techSPARK has warned while this could unlock additional private and public sector funding, it could see Bristol and Bath fall behind over the next five years.
The report suggested the cluster position itself politically to ensure policy is position to support the sector.
It stated the efforts of the region’s research institutes have led to a growth in the number of spin-outs, when compared nationally, with all four local universities "offering great strengths and benefits to the sector".
However, political leadership and political interest was one of the most widely raised topics, during the consultation and creation of the report.
Mr Sturge continued: “During the consultation for this report, the lack of political interest in the sector and poor leadership frequently emerged. The consensus is that political leaders don’t fully comprehend or champion the sector in a way that leaders in other clusters, like the Midlands and Manchester, do.
“It was noted, by those we consulted, how the West of England Combined Authority has grown in size in recent years making it appear harder to influence strategy and priorities. This leaves a sense that public and private sectors aren’t pulling in the same direction nor championing the sector on the national stage. techSPARK has been able to engage with officers at the Authority and so this report gives us an opportunity to push for ambitious and innovative new approaches”
The report praised human capital within the cluster but had concerns over "the risk of entrepreneur drain", leading to a limited community of more experienced entrepreneurs and a reduced appetite for individuals taking on ‘higher risk’ jobs.
The cost-of-living was also a concern, with Bristol named as the most expensive major city outside of London.
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