Pension firms should capitalise on the opportunity to boost investment into the tech sector, Science Minister Lord Vallance will tell investors today in his speech at the British Venture Capital Association’s (BVCA) private capital showcase.
Vallance will acknowledge that the UK is renowned for excellence in research and incubating companies in sectors including life sciences, AI and quantum technology, but note that many promising UK companies have been held back from scaling due to lack of capital.
“There are far too many UK companies operating at the cutting-edge of emerging technologies like AI, biotechnology and quantum, to which UK investors are underexposed,” said Vallance.
“Through our industrial strategy, we are building an environment where public funding, streamlined regulation and partnerships with industry are channelling investment into science and technology. Encouraging greater flows of capital into the sector is another piece of the puzzle, supporting companies to grow and jobs to be created.”
While $16bn has been invested into UK startups and scaleups last year and more than $8bn raised in the first half of 2025 – which exceeds France and Germany combined – the government wants to go further and faster to boost growth through its Plan for Change.
Today, Vallance will call on private pension investors to work with VCs and other asset managers to back the next generation of high-growth companies. It is hoped this would deliver long-term returns for investors while keeping more of the value and jobs created by those companies in the UK.
New Innovations Cluster Map
A new and improved Innovation Clusters Map will also be unveiled today to support investors in finding companies, sectors and regions of the UK to target for investment.
The tool allows potential investors, industry, research institutions and government to understand local innovation ecosystems and identify growth and investment opportunities.
It also identifies areas and regions where networks of businesses and research institutions are benefitting from close proximity, boosting the effects of research, development and innovation.
It will include information on sectors aligned with the government’s industrial strategy, including advanced manufacturing, creative, digital and tech, financial services, professional and business services, and life sciences.
Clusters ripe for investment include the north west of England, where life sciences companies are developing new drugs to fight cancer and inflammation, and vaccines to protect against the bacteria behind diseases like pneumonia and sepsis.
Elsewhere, companies in the Glasgow city region are building satellites that help to underpin modern technology and keep the UK connected.
