Why the East of England Is Becoming a Serious Home for AI and Deep Tech

What was Future Forward: Funding and Innovation in AI?

Future Forward brought founders, investors, academics and established local businesses to the University of Essex on October 1st, 2025.

The event was hosted by Walmer Group and Blott, in partnership with the University of Essex, Essex County Council and Innovate UK Business Growth. The brief was simple enough: what does it take to build and fund AI and deep tech companies outside the usual postcodes?

The conversation covered a fair amount of ground. Five themes stood out.

What did founders and investors say?

1. Start with the pain, not the technology

Building impressive technology has never been easier. AI has seen to that. Building something people will pay for remains exactly as hard as it always was. The advice from the panel was blunt: focus on the pain. Who has the problem? How badly? What are they doing about it today? Founders who can answer those questions tend to have an easier time with customers and investors alike.

2. Build in the open

Several speakers made the case for involving customers and communities throughout development. That might mean working closely with early users, sharing progress publicly, or using open-source tools where it makes sense. The principle is the same in each case. Do not disappear into a room for two years and expect the market to be grateful when you come out.

3. Where is the moat?

If the underlying AI models are available to everyone, what stops a competitor doing the same thing next month? The discussion on intellectual property kept returning to this point. The honest answers were proprietary data, protectable IP, deep knowledge of a sector, customer relationships and distribution. Usually it is a combination. Companies using AI tools to build products also need to be clear about what they own, which is a less comfortable question than it sounds.

4. Customers before capital

Raising money is a milestone. It is not the same as having a business. Revenue, traction and evidence of demand make a far stronger foundation than a full bank account, and they make the next raise easier too. The best fundraising story is still a business that works.

5. New technology, old values

For the established Essex businesses in the room, AI raised a different question. If a company has spent decades building its reputation, how does it adopt new technology without losing what made customers trust it in the first place? AI can change how a business operates. Should it change what the business stands for? Most in the room thought not.

How should AI and deep tech companies think about funding?

There is no single source of capital that suits every technology company. Each does a different job:

• Grants can fund higher-risk development and help prove a technology works.
• R&D tax relief returns part of the cost of qualifying research and development.
• Equity funds growth once there is evidence of demand.
• Corporate partners and strategic investors can bring customers, expertise and routes to market.

Deep tech adds a complication. The gap between research and revenue can be long, and investors need to be comfortable with that. So the useful question is less "where can funding be found?" and more "which funding fits where the business is today, and what has to be true before the next type becomes realistic?"

Why the East of England?

The region has a stronger hand than it sometimes gets credit for:

• Universities producing research and graduates, with the University of Essex among the most active in the country for Knowledge Transfer Partnerships.
• Lower costs than London, with London still under an hour away from much of the region.
• International airports and ports.
• Established industrial and commercial businesses that need technology and can act as early customers.
• A growing number of investors and innovation networks.

For deep tech in particular, that last pairing matters. Research is only half the equation. It needs businesses nearby that can turn it into something commercial.

What needs to happen next?

Regions do not become technology centres by announcement. They get there through founders sharing what they have learnt, investors showing up, universities working with industry, and someone going to the trouble of putting them all in one room.

The East of England has the ingredients. The job now is connecting them. Will the region copy what already exists elsewhere, or build on what it is already good at? The second option looks a lot more interesting.

Frequently asked questions

What is a Knowledge Transfer Partnership?

A Knowledge Transfer Partnership (KTP) is a part grant-funded project, supported by Innovate UK, that links a business with a university and a graduate or postgraduate, known as an Associate, to deliver a specific innovation project. Projects typically run for one to three years.

Does a company need to be based in London to raise investment for AI?

No. Investors look for a real customer problem, evidence of demand, a credible route to market and a team that can deliver. Location matters far less than it did, and regional investors and networks are increasingly active.

What funding is available for AI and deep tech companies in the UK?

The main routes are innovation grants (for example through Innovate UK), R&D tax relief, equity investment from angels and venture capital funds, and partnerships with corporates. Most companies use more than one over time.

Who organised Future Forward in the East of England?

The October 2025 event was co-hosted by Innovate UK Business Growth, Walmer Group, the University of Essex, Essex County Council and Blott.

Key takeaways

• Having "AI" in the pitch deck does not make a company investable. A paying customer with a real problem still does most of the work.
• When everyone has access to the same models, the advantage has to come from data, IP, expertise or distribution.
• Grants, R&D tax relief, equity and corporate partnerships suit different stages. The order matters.
• The East of England has the universities, the businesses, the transport links and lower costs than London. What it needs is better connections between them.