Nottingham’s tech sector is brimming with entrepreneurial energy and graduate talent, but new analysis from Built in Notts reveals that the city is being short-changed when it comes to public investment.
The research, which compared 20 major UK cities across Innovate UK funding, startup creation and graduate outcomes, found that Nottingham is outpacing many of its larger rivals but receives far less Innovate UK support per capita than other major tech hubs.
Despite limited government backing, Nottingham saw 170 new tech businesses formed in the last year, and continues to produce more than 2,000 engineering and technology graduates annually, providing a strong skills pipeline for its digital economy.
Yet the city secured just £6.1 million in Innovate UK technology funding in 2024/25, equivalent to £19 per capita, compared with over £45 million for York or £225 per capita, and £28 million for Cambridge equating to £188 per capita.
Nottingham’s eighth-place ranking highlights a city that’s doing more with less. It continues to produce a high volume of skilled graduates and a steady flow of new tech startups, yet its funding intensity ranks among the lowest in the index revealing a clear “potential versus investment” gap.
“Nottingham has always been a city built on hustle and heart,” said Martin Sandhu, founder of Built in Notts. “We’ve got the talent and the ideas, but we need to build a stronger community to create a centre of gravity to enable investment.
“At the moment the level of investment doesn’t reflect the potential of the city and region. If we want to keep our best graduates here and help startups scale, we need to close the gap between potential and funding. Nottingham’s story isn’t about what’s missing, it’s about what’s waiting to happen if we get this right.”
The Built in Notts Potential vs Investment Index aims to spotlight where UK cities are overperforming or underperforming relative to their funding, identifying where investment could have the greatest impact in levelling up regional tech ecosystems.
“Nottingham’s results paint a clear picture of a city driven by self-starting founders, skilled graduates, and collaboration, but one that remains underfunded compared to its output and capability. If Nottingham’s startup scene can achieve this much without serious funding, imagine what it could do with it,” added Sandhu.
