Fhunded, Lancashire County Council’s (LCC) early-stage investment programme, has used its third anniversary to share details of the impact it has had on the county’s startup and scaleup economy at an event in Preston.
The latest data reveals that Fhunded’s investor community has injected over £35m of funding into Lancashire’s early-stage business ecosystem since being launched in July 2023.
This represents 47% of all the total amount of verified equity investment raised by Lancashire businesses during this period, kick-starting new ventures – and creating new high-value jobs – in the process.
In addition to generating significant levels of early-stage investment, the Fhunded programme has transformed perceptions of Lancashire as an investor destination.
Venture capitalists from many of the UK’s leading funds have now taken part in Fhunded’s ‘meet the investor’ events, including PXN, Par Equity, Seneca Partners, YFM, River Capital, Northern Gritstone, Mavern, DSW, Jenson Ventures, ACF, Mercia, Puma Ventures, EHE, Deepbridge and Solidbond.
Prior to the establishment of the Fhunded, most of these funds had never actively sought investment opportunities in the county, but many have now gone on to make an investment in a Lancashire-based business.
Government-backed organisations such as the British Business Bank and Innovate UK have also partnered with Fhunded on Lancashire events, as have several major banks and other institutional investors.
The Preston gathering, which was hosted at the OneCoWork hub on Winckley Square, was also used to celebrate the success of the Fhunded Angels network – an initiative which has seen a group of wealthy private investors being introduced to ambitious Lancashire founders looking for finance.
Fhunded Angels – the largest angel network in the UK managed by a local authority – has already helped to facilitate over £1m of equity finance into several Lancashire startups since being launched last March, with more deals in the pipeline.
LCC’s Fhunded programme has also attracted praise from the wider business community for its positive approach to regional investment. In 2024, it was recognised as a trailblazer in the Prolific North Tech Awards, while earlier this year it was shortlisted as a Regional Champion of the Year finalist in the UK Businesses Angels Association’s (UKBAA) national awards.
LCC’s Fhunded lead, Rory Southworth, said: “When we hosted the very first Fhunded event in July 2023, Lancashire’s early-stage deal flow was virtually non-existent, with investors preferring to focus on city-regions like Liverpool, Manchester and Leeds. This lack of access to locally based VC and angel finance resulted in Lancashire founders having to go outside of the county to try and find funding, with many relocating altogether.
“Three years on and I’m incredibly proud that we’ve not only supported a community of investors which have put over £35m of equity investment into Lancashire, we’ve also put the county firmly on the map as place where you can find and do deals. Getting nominated for a UKBAA award for Fhunded Angels is another major achievement, as is the fact our angel programme has already enabled over £1m of pre-seed investment within its first year.”
Rob Binns, chair of the Lancashire Early-Stage Investment Board, a group of private sector business leaders which oversees the work of Fhunded, said: “Prior to Fhunded, Lancashire was perceived by VCs and angels as a place where finding investment opportunities was frustrating and time consuming. Three years on, Fhunded is on the radar of over 20 major VC funds, has a network of over 20 angel investors looking for opportunities, and is engaged with hundreds of dynamic Lancashire entrepreneurs seeking investment.
“It’s a remarkable achievement, and a great example of Lancashire’s ambition and can-do spirit.”
Councillor Brian Moore, cabinet member for economic development and growth at Lancashire County Council, added: “Fhunded brilliantly demonstrates how a local authority can work with businesses, investors, and partners, to secure new investment, create jobs and drive growth.
“It’s further helping Lancashire to retain and nurture its home-grown entrepreneurial talent while also boosting the county’s reputation outside of the region.”
