Cambridge cluster and spin-outs create venture capital ‘hotspot’ in the region
The East of England is emerging as a venture capital ‘hotspot’ reflecting the region’s expanding role as a hub for emerging technologies, life sciences, and digital innovation says a new report. As home to nine per cent of all the UK’s venture-backed companies and with 17,000 employees, the East has emerged as ‘a leading destination in the nation’s VC ecosystem’, according to an annual report Venture Capital in the UK from the British Private Equity & Venture Capital Association. It notes that the Cambridge cluster and the large number of spinouts from the university, are major drivers of VC activity that attracts high levels of talent with many local firms securing large funding rounds to scale their operations globally. The East’s VC performance reflects a broader trend of increasing investment in the UK outside London. Michael Moore, chief executive of the association, said: “Venture capital already makes a huge contribution to the wider economy, and the East of England plays a crucial rule in that. Cambridge especially, is in the vanguard of attracting funding and developing the innovative companies that will drive the economic growth of the future.”
But he added: “However, some firms continue to find fundraising challenging, especially from domestic sources. It’s important that the very promising reforms to the UK pensions system outlined by the chancellor in her Mansion House speech increase the opportunity for pension savers to benefit from investing in our vibrant regional venture capital sectors.”
Separately, a battery development tech company spun out from Cambridge University, Illumion, has closed a £2.1 million seed funding round. Illumion’s ‘charge photometry’ microscope offers a rapid, affordable, and previously inaccessible real-time visualisation of energy storage within batteries. It says the investment will enable Illumion to bring its tech to market, which could transform battery research and development. Foresight’s Ventures team led the £2.1 million round supported by Cambridge Enterprise Ventures, Parkwalk Advisors, and Cambridge Angels.
Photo – The Illumion team: (back row, l-r) : Jiho Hans, Christoph Schnedermann, Guilherme Nettesheim, front row (l-r): Akshay Rao, Alice Merryweather, Elena Pascal, Cathryn Langley
Business activity dips for first time this year as Budget tax rises take effect
Business activity across private firms in the East of England dipped for the first time this year in November as tax rises in the Budget took their toll although firms saw a ‘modest’ rise in new orders. The NatWest East of England growth tracker business activity index fell below the no-change mark of 50.0 to signal a slight reduction in total activity. After increasing for 11 months running, the index fell back to 48.7, from 51.2 in October. But new business rose for the fourth time in the past five months, albeit at a modest rate with some firms linking subdued demand from customers to high taxes. The East was one of only four UK regions to see higher new orders in November, Meanwhile, cost pressures at private firms in the East slowed for the third time in four months. Lisa Phillips, regional managing director, Midlands and East, commercial mid markets, said: “The main positive for the East of England from the latest survey was a renewed increase in new business. This suggests that the slight dip in total activity in November, following 11 successive monthly increases, might be temporary as firms paused to readjust business plans following the Budget. There was also some encouragement regarding inflation. Average input prices rose at the joint-slowest rate in four years, and one that fell further below the long-run survey average….”. Workforce numbers across the private sector in the East fell for the third month running and were linked to higher employer national insurance costs and minimum wage rises. But the rate of job-shedding has eased since October.
Essex-based company acquires key supplier after 45 years working together
Clacton-based switching technology company Pickering Group has acquired Mumford Engineering – which is based on the same industrial estate in the Essex coastal town – in a deal where Scrutton Bland acted as lead advisers to the buyer. Mumford Engineering is a key supplier to Pickering and the two have worked closely for the past 45 years. The deal provides certainty to employees and former shareholders and directors who will all remain with the company on completion of the acquisition. Pickering is refitting a local property to provide a more modern working environment for the Mumford team, with the move set for completion next summer. The deal also means Pickering can invest in equipment, processes and people at Mumford. Mark Smith, corporate finance director at Scrutton Bland said “From the outset we had a very clear idea as to where we needed to focus our work and where the Pickering Board could input into the process.”
Keith Moore, Pickering Group managing director, said: “Having grown organically since my father started the business in the late 1960’s, this was the first acquisition that we’ve completed and the support of Scrutton Bland was invaluable to us throughout. Their ability to explain sometimes complex matters in layman’s terms for what was our first acquisition was particularly important to the Pickering board”.
Photo (l-r) : Ian Johnston (Pickering), Luke Morris (Scrutton Bland), Keith Moore (Pickering), Stephen Hewes (Mumford), Poppy Moore (Pickering), Mark Smith (Scrutton Bland), Claire Key (Pickering), Glen Ball (Pickering)
Deepest draught vessel to visit UK arrives in Felixstowe following major investment
The deepest draught vessel to visit a UK port arrived in Felixstowe earlier this month following the Harwich Haven Authority’s £130 million investment to deepen the approach channel. The TA containership Elenoire, operated by Mediterranean Shipping Company and with a draught of 17.1 metres, arrived from Tanjung Pelapas, Malaysia on 1 December. The authority deepened the approach channel from 14.5m to 16m in 2023, the Port of Felixstowe has four deep water berths to accomodate ‘megamax’ and deep draught vessels. William Barker, marine director and harbour master, Harwich Haven Authority, said: “No other port in the UK has the depth of water to accommodate vessels with a draught of 17 metres. We have seen an increase in megamax and deeper draught vessel arriving into the Haven. However, we are well prepared as our pilotage, pilot launch and support teams are both highly skilled and highly trained individuals who work hard to ensure these huge ships arrive safely at their destination.”
Green light for £18 million skills and innovation centre in Stowmarket
Planning permission has been granted for an £18m skills and innovation centre in Stowmarket at Gateway 14, the business park close to the A14 which is part of Freeport East. Work can now start on the three-storey, 35,000 sq ft building, which will include office space for start-ups, collaboration and innovation spaces, training and meeting rooms and a café. The centre aims to address skills gaps locally and in the Freeport area particularly for growth sectors such as the green economy and digital/AI tech. Ben Oughton at Jaynic, which is the development manager on the scheme, said: “The skills and innovation centre at Gateway 14, ensures that the site is becoming a truly mixed-use scheme attracting a variety of users that will benefit the regional economy in this part of East Anglia.” Freeport East agreed £16.66m funding for the centre earlier this year, with Mid Suffolk District Council, which granted planning permission, meeting the remaining cost.
Technology set to play key role in conference & meeting sector in 2025
Technology will play a central role in every area of conferences and meetings in 2025 whilst demand will polarise with luxury growth continuing while at the other end productivity will be key to success, according to Wyboston Lakes Resort. CEO Steve Jones (photo), said: “We will see further polarisation of offerings in sectors that are labour heavy, such as hospitality, with the size of the squeezed middle growing. Luxury as a segment will continue to grow, as will the rates charged and the opulence delivered, and at the other end of the spectrum automation, efficiency and productivity will be critical to success….”
Richard Smith, chief commercial officer expected: “Shorter lead confirmations, reflecting the wider economic landscape as clients enquire, but then hold off on confirming for as long as possible. However, conversely, we will see larger events, higher budget, events commit further out as they seek certainty of price, location and quality of service/venue.”
“Prices will increase as the effects of the Budget kick in especially in the hospitality and retail sectors,” said Julie Ireland, chief financial officer & company secretary.
“Technology will remain pivotal, not just for operations but for creating immersive experiences,” said Louisa Watson, marketing director & sustainability lead. “Virtual and augmented reality for event previews, AI-powered event apps, and seamless hybrid event solutions will differentiate successful venues. I think the demand for unique, tailored experiences will continue to grow, particularly in the MICE sector.”
She added: “Marketing efforts will need to emphasise genuine sustainability practices. Guests and event planners are increasingly drawn to businesses that go beyond greenwashing and demonstrate measurable environmental impact, such as carbon-neutral events or waste-free catering.
