Vallance calls for investment in future tech champions
Pension firms should increase investment in Britain’s world-class science and technology companies to help create the unicorns of the 2030s, Science Minister Lord Vallance has said.
Speaking at the British Venture Capital Association’s private capital showcase, Lord Vallance warned that while the UK is a global leader in research and development, too many firms at the cutting edge of AI, biotechnology and quantum are being held back by a lack of domestic capital.
The UK attracted $16 billion of investment into start-ups and scale-ups last year and a further $8 billion in the first half of 2025 – more than France and Germany combined. But Vallance argued that institutional investors, particularly pension schemes, remain “underexposed” to the sector.
Long-term returns and UK growth
Highlighting Cambridge-founded chip designer Arm as an example of a British success story that went global, Vallance urged pension providers to work alongside venture capital and asset managers to back the next wave of high-growth companies.
“Encouraging greater flows of capital into the sector is another piece of the puzzle, supporting companies to grow and jobs to be created,” he said.
“There are far too many UK companies operating at the cutting edge of emerging technologies to which UK investors are underexposed.”
The minister argued that increased pension fund involvement would not only deliver strong long-term returns for investors but also ensure that more of the value, skills and jobs generated by UK innovation remain in Britain.
New innovation cluster map
To support investors in identifying opportunities, the government has unveiled a new Innovation Clusters Map, highlighting regions where networks of businesses and research institutions are driving advances across sectors from life sciences and advanced manufacturing to creative industries and fintech.
The map showcases areas of “outstanding research and commerce”, designed to help investors spot concentrations of expertise and maximise the benefits of regional skills and resources.
Examples include the north west of England, where life sciences firms are developing new cancer drugs and vaccines against diseases such as pneumonia and sepsis, and the Glasgow city region, dubbed “satellite city”, which is at the forefront of building satellites that underpin modern communications.
