The North East is making strides in health tech — but disparities in funding and infrastructure ‘must be addressed’

The North East is emerging as a health tech hotspot, brimming with ideas, talent and ambition. But according to global medical entrepreneur Mike Trenell, the region still lacks the ‘joined-up’ infrastructure it really needs to capitalise on its strengths.

Trenell, who teamed up with US-based tech leader Adam Wootton in 2024 to launch digital health platform Daiser, offers a candid look at the promise and growing pains of the region’s health tech ecosystem for Prolific North’s GRAFT tech series,

“The North, and especially the North East, has huge potential,” he tells Prolific North. “We have world-class universities, a growing innovation culture, and a community that genuinely wants to collaborate.”

READ MORE: How Northern tech is “grafting” its way to the top with global ambitions

With a mission to simplify and accelerate the adoption of digital health services, Daiser is part of a new wave of health tech firms in the North East.

These companies are emerging at pace alongside leading hospital trusts, facilities and incubation spaces at the likes of Biosphere and NETPark, with major players like GSK, Fujifilm Diosynth, and Sterling Pharma based across the region.

Although there is plenty of potential for continued growth, the infrastructure that ties talent, capital and opportunity together needs improvement.

“The tech landscape here is maturing, with brilliant clusters in health, data, and AI. What’s still emerging is the connective tissue – more shared infrastructure, more visibility between sectors, and more consistent access to capital.”

As the health tech industry shifts from treatment towards prevention, he sees “massive opportunities” for the North to lead in personalised and preventative digital health solutions.

“The North is well-positioned to lead in this space because of its strong academic heritage, integrated health systems, and the kind of lived experience you don’t always get in London or other major cities. Combine that with new digital capabilities, and you’ve got a perfect launchpad for scalable innovation.”

“The North still lacks the density of investors who truly understand health tech”

Despite plenty of promise, access to early-stage capital and specialist health tech support lags behind hubs in places like London or Boston in the US.

READ MORE: Inside the Northern tech scene and the investors betting big outside London

“It remains a hurdle,” he explains. “The North still lacks the density of investors who truly understand health tech, particularly the longer timelines and clinical validation pathways that come with it.”

The health tech and thriving life sciences sector in the North East already contributes £2.7bn annually to the UK economy and employs more than 15,000 people. 

Yet a recent report from the Centre for Process Innovation and Square One Law warned that regional challenges like funding disparities and infrastructure gaps ‘must be addressed’ to sustain the sector’s momentum.

“For companies looking to scale globally, the North needs to build stronger links to international markets and provide better on-ramps to major buyers, partners, and funders,” agrees Trenell.

While the region’s support ecosystem is growing with initiatives like the Northern Accelerator and regional innovation hubs, Trenell says the investment side is “still catching up” and there needs to be a “more joined-up approach” across policy, funding and support.

We’re getting closer, but it’s not there yet,” he says. “Investment is critical, but so is guidance: navigating IP, regulation, procurement, and partnerships can be overwhelming.

“More ‘smart capital’ that brings expertise along with funding would go a long way. And more risk-tolerant public sector procurement models would give early-stage companies a chance to prove their value within the health system.”

READ MORE: Northern tech firms consider moves to US as funding frustrations mount in the UK

Beyond start-up support, he believes the region could benefit from more scale-up experience too.

“Many entrepreneurs here are doing it for the first time, and we could all benefit from more peer networks and mentorship from people who’ve done it before.”

“We need to match that ambition with the right infrastructure, capital, and encouragement…”

Although Trenell is based in the North East, his co-founder Adam Wootton operates from New York. It’s a transatlantic setup that reflects the company’s global ambition but it brings plenty of strategic and cultural benefits too.

“It works incredibly well, partly because we bring complementary perspectives. The UK side brings a deep understanding of healthcare, regulation, and behavioural science, while the US side brings experience of faster-paced tech development and commercial scaling,” he explains.

“The time difference can actually be a benefit. We have an almost round-the-clock progress. What makes it work is clear alignment on mission and values, and complete trust in how we each operate.”

READ MORE: Is a ‘start-up mentality’ in the UK holding back potential billion-dollar businesses in the North?

He’s also noticed key differences in the mindsets between UK and US start-up ecosystems.

“In the UK, we’ve often been taught to optimise and de-risk before we think about scale. In the US, the instinct is often the opposite: build big, back ambition, and solve the details later. That mindset leads to bigger bets, and sometimes bigger breakthroughs.

“In the North, I think we’re somewhere in between, but there’s a growing appetite to build globally relevant businesses.”

For the health tech sector’s continued success in the North East, he adds: “We just need to match that ambition with the right infrastructure, capital, and encouragement to take bolder steps.”

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