Northern Gritstone opens San Francisco office to attract US investment

Northern Gritstone has announced plans to establish a presence in San Francisco as it seeks to secure additional capital from American investors. The investment group, which specialises in supporting technology innovations emerging from universities in northern England, stated that the move is designed to facilitate faster growth for its portfolio companies by tapping into the resources of the Californian market.

The firm was launched as a joint initiative by the universities of Leeds, Liverpool, Manchester and Sheffield. Management noted that while the scientific and technological output from these institutions is globally competitive, the ambitions of the resulting companies require access to capital hubs such as California. Chief executive Duncan Johnson explained that US capital allows for quicker expansion, citing the region’s superior procurement capabilities and higher risk appetite for technology. He added that this financial support enables the recruitment of additional talent within their businesses.

To support this strategy, Northern Gritstone will recruit a venture partner based in the Bay Area. This role is intended to provide a soft landing for portfolio companies seeking support from regional investors. The group cited data from Dealroom indicating that UK companies backed by American investors typically raise larger funding rounds earlier and experience faster revenue growth. Johnson observed that UK companies often trade at a discount in the US and that capital is adept at finding opportunities, but noted that firms must make the effort to make the process easy for investors.

Several companies in the Northern Gritstone portfolio already have US investors. These include Pragmatic Semiconductor, Iceotope and Phagenesis. The new office aims to build on these existing relationships and broaden the group’s ability to connect northern UK innovation with American financial resources.