Issue #229: Grid Finder acquired
Today we celebrate a US acquisition of a North East startup, reflect on macro headwinds for emerging tech companies and highlight ecosystem positives!
Morning all. While your favourite newsletter Fat Controller (forgive me, I am sooo full of haggis from Burns Night celebrations) has a tendency to liberally position each week in tech as ‘a biggie’, I think this one really has been. So strap yourself in, reader! We’ve gone a bit less community teasin’ today and a bit more opportunity seizin’ for you to enjoy. Let’s go!
Our top story today comes by the way of esports gaming startup Grid Finder being acquired by US-based motorsports group RAFA Racing Club, in a transaction understood to be worth several millions of pounds, as reports The Journal. Grid Finder and founder Tom Stapley-Bunten are well-known in the NE tech startup scene; Tom is passionate about the region and the team have both collaborated with regional assets and given back to the ecosystem. I think that’s admirably special.
It is a hard time for tech startups right now (a chorus of violins begin to slowly play as readers frantically reach for their familiar Tech Digest bingo cards…). In all seriousness, many of us have worked for/with tech startups in the region, have close exposure to the ecosystem and it’s normal to see startups come and go. It’s so critically important that we celebrate successes; what Tom, Nikhil and the team have achieved here is brilliant. So all power and huge congrats to them. The future is exciting.
I sometimes get bogged down when writing and reflecting about our region. Sure I bang on about shiny innovation every week, giddily chatting about quantum computing or flippin’ semi-conductors, but really it’s people that fascinate me. I’ve written about it before but I believe tech to be one of the tools in our arsenal to change this part of the world for the better; digital technology presents us with the potential to transform our prosperity. Today anyone can be an entrepreneur and tech, I really believe, can be one key to ultimately unlocking social mobility. The Grid Finder story has really put a smile on my face this week in an otherwise challenging few days for not only North East tech but indeed the UK ecosystem overall. More on this in the National Spotlight section below, for now there’s more news to share!
Right, couple of other positive headlines to share from the week (which you can of course read below in the News and Features sections). Kudos to Northstar Ventures on launching their EIS Growth Fund to back tech teams in the region and amazing from Opencast to help out Bill Quay School’s STEM Shed project in Gateshead - you may remember us championing Georgina Dye and Bill Quay’s robotics credentials last April. Elsewhere there’s another Kromek win but tough times for Petards.
Looking ahead to Feb, watch out for an upcoming North East tech report from the folks at UKTN, former Journal Editor Brian Aitken is bringing a new digital news platform to market (The QT) and regional tech festival TechNExt will be taking Fringe Event submissions. Got something to showcase or discuss in North East tech? Get involved!
For anything else or help with anything you might need related to the North East tech sector, please don’t hesitate to drop us a line! Enjoy your weekend, Jamie
This week’s news
Newcastle gaming startup Grid Finder acquired in multimillion-pound deal
Northstar Ventures launches EIS Growth Fund to ‘supercharge’ tech firm success
Gateshead's Edge Innovation looks to grow following five-figure NEL investment
Surveillance firm Petards flags revenue fall after challenges in 2023
Turnover hike for Stockton’s Razorblue
Features
Newcastle academic's role in advising Bank of England on 'digital pound'
Feature interview: Sola Idowu, founder of Hexis Labs
Opencast's donation helps school's 'STEM shed' vision
Alt Labs appoints Rob Jackson as Chief Growth Officer
National Spotlight / What else I’ve read this week
As you guys know I like to keep you abreast of what’s going on in tech UK-wide, and it ain’t all sunshine and rainbows, as alluded to in today’s introductory note. Here’s some further reading, from what I have flicked through this week, check it out if you like!
Government direction
It’s fair to say many tech leaders have criticised the government’s approach to UK tech growth this week. The Startup Coalition has urged gov to rethink its position on angel investment, with fears the game could become drastically more uninclusive harming regional ecosystems (like ours). See the Open Letter from Startup Coalition below. Moreover, George Freeman is one who has been asking what is the approach to UK wide growth?
An open letter to the Chancellor
UK tech sector is ‘not just OnlyFans’, business minister claims
New UK rules will drastically lower the number of women able to angel invest in startups
Where have all the UK tech 'unicorns' gone?
North East on the map? Perhaps not
To reiterate my above statement re Grid Finder it’s imperative we vocally celebrate our regional tech sector wins. It was somewhat deflating, though indeed unsurprising, to see some national coverage of UK startup hubs and accelerators this week have no mention of the North East or our leading cities. Why? Well because the evidence isn’t there. Right now, collectively, we don’t have the numbers or the wins to compete with contemporaries like Leeds,Manchester, Bristol, Birmingham etc. That’s not to say we can’t in future… but it’s perhaps a sobering reminder that Newcastle sits 28th in the hub rankings, Sunderland 164th, Middlesbrough 190th…
Beauhurst: UK’s top startup hubs (outside London)
SeedLegals: Top UK accelerators 2024
And… one for the geeks
To cap off a long one today, for anyone interested in how the wider economy and UK cities are performing (not just tech) see the ever-excellent Tom Forth giving his red hot takes on productivity.
Some of you will know the Centre for Cities released a big report this week (for all things Policy please read the excellent North East Policy Newsletter Wor Room from Arlen Pettitt) and it’s not looking good for some places (including the North East). I have included a Chronicle writeup FYI.
Tom Forth on UK productivity across cities
North East ‘levelled down’ since 2010, Centre for Cities
Post of the Week
