From IPOs to international expansion, founders behind fast-growing tech businesses shared some of their lessons on scaling in the North, urging other start-ups to prioritise customers over investment first and to think globally much earlier.
Speaking during a panel session on scaling at Prolific North’s GRAFT tech event at Sister in Manchester on 11 March, leaders from IntelliAM, Buymedia, Bruntwood SciTech and PXN Group discussed how tech companies are building competitive businesses in the North and the different routes founders can take to get there.
Ben Davies, marketing director at PXN Group and host of the panel, opened the session by reflecting on how “unrecognisable” the investment landscape in the North of England has become over the past decade, with far more funding options now available to scaling tech businesses.
While venture capital and private equity are often the most talked about routes, one path that receives far less attention is the IPO (Initial Public Offering).
That was the route taken by Sheffield’s IntelliAM, which has seen rapid growth since launching in 2023. Just 18 months after being founded, the AI-driven software company floated on the Aquis Stock Exchange in 2024.
Co-founder and CEO Thomas Clayton explained how the business evolved from its roots as a manufacturing consultancy into a software-led company powered by AI and machine learning.
“With the birth of AI and machine learning, we were able to pivot from what was largely a consultant-led business, using some software, to predominantly being in the software space,” he said.
“We had unique properties that the stock market is particularly interested in because we had a legacy with a strong customer base.”
Despite describing the stock market as “quite risk averse”, Clayton said the IPO process, which involved extensive due diligence and legal verification, ultimately proved to be the right route for the business.
“We looked at private equity as well as a public offering and we actually had two offers privately. But the public offering allowed for much less dilution. If we were to raise again, we’d have access to public funds, which allows us to grow at the rate that we wish to grow at.”
For Clayton, the most important lesson for founders considering investment is understanding exactly why they need it in the first place. Prior to the IPO, he had spent nearly two decades building businesses through organic growth and profitability.
“If you’re going to raise investment on either side of the equation, you need a solid business case and it has to be right for you. It’s not enough to say you want money to aid growth. You can do that through having a successful business.”
In IntelliAM’s case, the public listing also made a big difference in how much equity the founders gave up too.
“The IPO meant there was about a 10% difference in dilution levels. That’s a significant change in what you’re giving away as a business. And there is a lot of kudos in being on the market.”
For founders considering the same route via an IPO like IntelliAM, he had one key piece of advice: surround yourself with the right advisors.
Bootstrapping before scaling
For Buymedia founder nd CEO Fergal O’Connor, the journey to scale looked very different.
The AI-powered ad platform was bootstrapped for four years after launching in Galway, Ireland, becoming one of the country’s fastest-growing companies before expanding into the UK market last year.
The business initially focused on securing customers and validating whether the problem it was trying to solve genuinely existed, relying on government grants and funding support before pursuing angel investment.
“I think that’s really important for early-stage businesses rather than giving away a lot of equity early on. Try to validate the problem with grant and government funding first.”
When Buymedia began exploring international expansion, the company ultimately chose Manchester as its UK base after reviewing multiple locations including London, Edinburgh and Cardiff over an 18 to 24 month period. For him, the decision came down to market size, accessibility and connectivity.
“I can fly from the west of Ireland into Manchester and London for £15. It costs me £200 to go from Manchester to London by train. So the connectivity between Ireland and the UK is really easy for our team to get back and forth.”
But the decision to base the business in Manchester was also driven by the region’s ecosystem, from the “exceptional” talent pipeline coming out of local universities to its thriving tech and business communities.
“The Irish community are all about helping each other out and collaborating if somebody has a problem. We found that very much here in the Manchester business community as well with a very collaborative approach to business.
“A lot of the other regions spoke about what they could do, but you never really felt that they really were going to do it.”
‘There’s a lot of support available‘
Reflecting on Buymedia’s growth journey, O’Connor said the most important part of scaling has always remained simple and it’s “all about your customers”.
“Unless you have customers actually engaging with your product and buying your product, your business is going to go nowhere,” he explained.
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In 2024, Buymedia also “doubled down” on PR, media coverage and industry awards, helping the business gain visibility with investors after appearing on the Deloitte Fast 500 and Fast 50 Ireland lists.
“From a private equity and venture capital investment perspective, I was getting inbound enquiries from Boston, New York and San Francisco and all across Europe asking for a chat because of how fast the business was growing.”
While he emphasised that customers and cashflow must always come first, he suggested awards can still play a role in helping early-stage businesses gain credibility and visibility.
From an ecosystem perspective, Hannah Churchman, head of innovation and growth for Manchester at Bruntwood SciTech, said the North is increasingly well positioned to support high-growth tech companies.
With Bruntwood SciTech operating sites across multiple Northern cities, she pointed to a growing opportunity in deeptech and research-driven innovation.
“We’re seeing some really exciting developments coming out of the region,” she explained, pointing to companies securing multi-million-pound funding rounds and expanding internationally.
But she also encouraged founders to start thinking about international markets much earlier.
“If you’re looking to get to a scale-up position, I don’t think it’s ever too early to start thinking about international markets and growth plans. There’s a lot of support available.”
As Bruntwood SciTech is closely connected to tech ecosystems across the North and actively helps link founders with investors, she highlighted some of its initiatives including a new early-stage Northern investor showcase held in January.
Hosted in partnership with The Growth Company, the event brought together more than 150 investors, founders and key ecosystem partners from across the UK.
“Showcasing what’s happening here and getting everyone in the room is really key,” she said. “We’re looking to hold that again in Leeds later this year. Talk to investors early, even if it’s not the right fit yet. If it’s not right for them, they’ll often pass it on to others. It’s never too soon to get on their radar.”
‘Just start’
Asked what advice they would give founders starting out today, the panel agreed on one key message: validate the problem they’re trying to solve, build for customers and be honest with investors.
Both Clayton and O’Connor warned that one of the most common mistakes early-stage start-ups make is building a product before confirming that a real problem exists.
“Make sure you don’t build before you have the customer,” said O’Connor. “You might think you have a global solution, but you have to validate that the problem is real first.”
And speaking directly to potential customers early on in the process can also shape product development too.
“Not only will they give you validation or direction, they might say your idea is interesting but actually, if you built this instead, that’s way more interesting for us and we will buy that. You get a lot through that validation process.”
He also advised founders not to seek venture capital too early or “give away too much equity” at the start of their journey.
“Get the first customers on board, build a product, find out how you can then get to a point where you validate. Then you can go and talk to investors,” he explained.
Clayton agreed, warning founders against “overegging” their technology when pitching to investors.
“You have to have an honest business case in order to grow,” he said. “Investors are smart, they will know whether it’s genuinely valuable and they will do their due diligence.”
Ultimately, he said building a company and taking on investment still comes down to taking a “leap of faith”.
“There’s always going to be a point where, if you’re thinking about investment or whatever means, you need to take a leap of faith. You’ve either got that character or you haven’t. For me, if you don’t do it, it’s the thing that will keep you up at night.”
