Sheffield and South Yorkshire have been ranked the UK’s leading “rising star” tech ecosystem in a new global index tracking startup growth and investment activity.
The recognition comes from the 2026 Dealroom Global Tech Ecosystem Index, which analyses more than 325 cities across 77 countries using measures including investment, talent, innovation and startup outcomes.
The “Rising Stars” category focuses on fast-growing ecosystems showing strong growth in enterprise value and startup activity relative to economic conditions, highlighting emerging tech hubs gaining momentum outside more established centres such as London, Manchester and Cambridge.
The ranking is the latest sign of growing confidence around South Yorkshire’s tech and innovation sector, particularly in areas including advanced manufacturing, AI, fintech, cybersecurity and deep tech.
Recent growth has included expansion from Sheffield fintech Bumper, which recently doubled the size of its city-centre headquarters, while cybersecurity firm Sitehop is developing post-quantum infrastructure technologies from the city.
South Yorkshire Mayor said the recognition reflected efforts to turn the region’s industrial and engineering heritage into long-term growth in digital and high-value sectors.
“South Yorkshire has always been a place that rolls up its sleeves and finds practical solutions to global challenges,” he said.
“Now we’re building on that strength – turning our innovation into real growth in digital, tech and other high-value industries, and backing our start-ups to grow and succeed here. It’s why Sheffield is being recognised as a real rising star on the global stage.”
The report also points to increasing collaboration between universities, founders, investors and public sector organisations across the region.
Projects highlighted include the Sheffield Innovation Spine, The Seam, Barnsley’s Digital Campus, Doncaster’s Gateway One tech and AI hub and the Advanced Manufacturing Research Centre in Rotherham.
Tracey Johnson, project director for TECH SY, said the ranking reflected “the strength of our founders, the depth of our talent, and the growing confidence from investors and partners.”
She added: “We are building something with real momentum here, with founders and their ideas at the heart of it.”
The University of Sheffield has also reported growing spinout activity, with more founders launching businesses tied to research and engineering expertise emerging from the institution.
Andy Hogben, the university’s head of commercialisation, said: “We are seeing a surge in the number of founders launching spinouts from the University and embedding themselves in the brilliant local entrepreneurial community.”
Industry leaders said the recognition was important because it reflected longer-term ecosystem growth rather than a short-term boom.
Tom Wolfenden, CEO of Sheffield Technology Parks, said: “The most encouraging thing about this ranking is that it reflects genuine momentum rather than hype.”
“We’re seeing stronger spinout activity, better founder support, more collaboration across the region and a growing pipeline of businesses choosing to start and scale here in Sheffield.”
The Dealroom index is widely used by investors, governments and economic development bodies to benchmark global startup ecosystems and identify emerging technology hubs.
