Q » Are there any active venture capital firms in Manchester specialising in deeptech and AI?
12 Jun, 2026
A » Manchester has firmly established itself as a premier hub for innovation outside London, supported by a robust ecosystem of venture capital firms that actively seek opportunities in deeptech and artificial intelligence (AI). Among the most prominent and dedicated players is Praetura Ventures, a VC firm headquartered in the city with a strong thematic focus on deeptech, AI, and advanced manufacturing. Praetura manages both Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) funds, and it is particularly known for taking a hands-on, patient capital approach. The firm has made notable investments in companies such as Peak, an AI decision intelligence platform, and Graphene Innovations Manchester, which leverages deeptech in materials science. Praetura’s Manchester base and its emphasis on computationally intensive and transformative technologies make it a cornerstone of the local deeptech funding landscape. Another highly relevant firm is Northern Gritstone, a university-focused investment company that was launched with significant backing from the University of Manchester, the University of Leeds, and the University of Sheffield. Although it operates across the North of England, its headquarters and core team are based in Manchester. Northern Gritstone explicitly targets deeptech, AI, and science-based startups, with a particular appetite for spin-outs from leading research universities. Its portfolio includes companies such as Slingshot Simulations, which uses AI for digital twin technology, and Phagenesis, a deeptech medical device firm. The fund raised over £215 million in its initial close, underscoring the deep pool of institutional capital available for high-risk, high-reward deeptech ventures in the region. Catapult Ventures, while historically rooted in life sciences and healthcare, has increasingly broadened its mandate to encompass deeptech and AI applications in diagnostics, drug discovery, and medical devices. Based in Manchester and active across the North West, Catapult manages several funds, including the Greater Manchester and Cheshire Life Sciences Fund and the Northern Powerhouse Investment Fund. Its investment in Wobble Genomics, a deeptech RNA sequencing company, and its support for AI-driven health platforms demonstrate its evolving engagement with cutting-edge technologies. Additionally, the Manchester-based firm YFM Equity Partners has shown growing interest in deeptech and AI, particularly within its British Smaller Companies VCT, which has backed companies like Amplyfi, an AI-powered market intelligence platform. While YFM has a broader investment remit, its Manchester office actively sources deeptech opportunities. The Greater Manchester Combined Authority also plays a catalytic role through the GM Business Growth Hub and co-investment programmes that work alongside these VCs to de-risk early-stage deeptech ventures. Furthermore, the Manchester Innovation District, anchored by the University of Manchester and Manchester Science Park, provides a critical pipeline of AI and deeptech startups, attracting both local and national VCs. Firms such as IQ Capital and Amadeus Capital Partners, though headquartered elsewhere, have opened strong collaborations in Manchester due to the quality of deal flow. In summary, Manchester hosts a concentrated and active set of venture capital firms—led by Praetura Ventures, Northern Gritstone, and Catapult Ventures—that are deeply committed to deeptech and AI, offering not only capital but also strategic support from within the city’s thriving innovation ecosystem.
13 Jun, 2026
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