Unlocking the UK’s golden triangle can be a flywheel for the UK

When Y Combinator, the Silicon Valley incubator that gave us Airbnb and Stripe, visited the UK, they went to London, Cambridge, and Oxford. This wasn’t random: these three cities form the ‘Golden Triangle’ of the UK’s research and innovation ecosystem - one of the most potent clusters of talent and technology in the world.

Yet, to me the Triangle’s potential to accelerate venture capital activity and startup growth here in the UK remains partially untapped, limited by infrastructure gaps and a lack of connectivity between the hubs. That’s what inspired me to launch this newsletter and blog: to be a small help in connecting these ecosystems, support founders—especially science-driven ones—and help ignite the flywheel that I think the golden triangle represents (to the benefit of the broader venture ecosystem).

My thinking was (and remains) that unlocking this ecosystem’s connectivity will be a flywheel for growth across the UK - benefiting other hubs and boosting the UK’s economy. I wanted to keep track here of ideas that relate to unlocking the UK’s venture flywheel, with longer pieces linked in.

The ‘golden triangle’ in numbers

The Golden Triangle is home to four of the UK’s top academic institutions - Oxford, Cambridge, Imperial College London, and UCL - which collectively accounted for over 30% of all UK university spinouts since 2011. Together, these spinouts have attracted a combined £10 billion in equity investment, driving advancements in sectors like biotech, AI, and quantum computing.

The triangle is a significant driver of the UK's technological and economic growth. Cambridge alone hosts over 5,000 innovation-driven companies, contributing to a combined tech ecosystem value of $191 billion, which accounts for 18% of the entire UK's tech sector. In 2024, Cambridge-based tech and life sciences companies secured over $892 million in venture capital funding, marking a 38% increase from the previous year. The city has produced 24 unicorns in the past 25 years, including notable companies like Arm Holdings and Darktrace.

Oxford's innovation landscape is equally impressive, with spinouts attracting £2.5 billion in external investments over the past decade. London continues to be a hub for tech giants and startups alike, fostering a dynamic environment for innovation and entrepreneurship. After spending the last few years supporting Oxford’s venture ecosystem, I’ve become convinced that better connectivity could transform collaboration, knowledge sharing, and venture activity, unlocking billions in additional economic impact.

This is a national opportunity

Much like a flywheel, innovation ecosystems thrive on cross-pollination. Universities generate groundbreaking research, startups commercialize it, and investors fuel the process. However, when these elements are siloed, the flywheel slows down and the gears grind on inaction and hesitance. Strengthening ties between London, Oxford, and Cambridge can accelerate this loop, driving growth for the entire UK tech ecosystem.

The golden triangle’s success isn’t just about regional growth; it’s a strategic national asset. The UK government has set its sights on becoming a “science and technology superpower” by 2030, with initiatives like the Advanced Research and Invention Agency (ARIA) and the Oxford-Cambridge Arc. But to achieve this vision, more must be done to integrate these hubs and ensure resources are accessible to founders across the UK.

By fostering stronger connections - be they physical infrastructure, venture networks, or collaborative platforms - we can supercharge the Triangle’s innovation flywheel, creating jobs, driving investment, and developing solutions that change the world.

In the news

There’s been a lot of coverage recently on how we (the UK, the EU) are losing out competitively to the US and other markets (even the UAE) when it comes to fostering scalable ventures. In the same breath, the commentators often talk about the talent that collects in the UK and the EU.

• The number of active VCs in Europe has dropped by 30% in the last two years - Sifted

• Founders and VCs back a Pan-European C corp, but an ‘EU Inc’ has a rocky road ahead - TechCrunch

• Hike in capital gains tax will spark tech exodus from UK, investor says - Harry Stebbings in The Guardian

• Rival nations seek to poach top UK and European AI start-ups - The Financial Times

• Europe’s Startup Funding Stabilized In 2024, But Remains Far Off Market Peak - Crunchbase News

• AI startup creation rose to fresh highs in Q4 as regions outside London catch up - UKTN

(Updating as I read more)

There’s a lot in here - and a lot I can’t do much about (regulation, macro-competitiveness, LP liquidity pressure, etc.). I thought at least I can help connectivity of the ecosystem and reduce friction on the flywheel by writing to connect. This is why I started this newsletter. I’ve linked below to some of the main pieces I’ve written that talk about how to kickstart the flywheel.

How can we kickstart the UK’s venture flywheel?

• Build the East West Rail, fast(er) - Feb 2025

When I write something that I think helps push this discussion forward, I’ll add here.

Cheers everyone - the UK needs a positive growth vision - let’s contribute to that. Mike