Northern Gritstone Plans San Francisco Office to Boost US Investment in UK Startups

MANCHESTER — Manchester-based investment firm Northern Gritstone is preparing to open an office in San Francisco, in a move designed to attract more US capital into promising startups across northern England.

The venture capital firm plans to spend around $1 million establishing its San Francisco operation and hiring a venture partner focused on building relationships with American investors and supporting portfolio companies.

Northern Gritstone, which has raised about £382 million, invests in early-stage businesses and university spinouts across cities including Manchester, Leeds and Sheffield. Its focus includes deep technology, life sciences and innovative scientific research.

The move reflects growing competition for US venture capital, with British startups increasingly looking towards Silicon Valley and other American investment centres for larger funding rounds and international expansion.

The firm's chief executive, Duncan Johnson, has argued that US investors can offer greater risk appetite and faster access to growth capital than some UK funding sources. Several companies in Northern Gritstone's portfolio have already attracted American backing.

The investment firm recently received a £20 million boost from investors including the British Business Bank, strengthening its ability to support companies emerging from universities and research institutions.

For northern England, the strategy could help close the gap between world-class research and the capital needed to turn that research into major businesses.

Manchester, Leeds and Sheffield have developed increasingly important technology and life-sciences ecosystems, but founders have often faced challenges securing sufficient late-stage capital to scale internationally.

Northern Gritstone's San Francisco presence could give its portfolio companies closer access to American investors, corporate partners and technology networks.

The move also highlights a wider challenge for Britain's startup economy: creating globally competitive companies requires not only scientific talent, but sustained access to international growth capital.

If successful, the new US operation could strengthen financial links between Silicon Valley and northern England while helping more British deep-tech businesses compete on the global stage.