Cambridge Forum: Powering the UK’s next wave of innovation

The event connected J.P. Morgan’s network with local entrepreneurs and investors to discuss the opportunities and challenges of growing UK companies with international ambitions.

Now in its third year, the Cambridge Forum highlighted the ongoing activity and progress in the UK’s life sciences and deep tech sectors. The event provided a space for sharing ideas and discussing how to scale businesses, reinforcing Cambridge’s position as a centre for innovation.

Despite broader economic uncertainty, the forum reflected a sense of cautious optimism, as investors and founders assessed a market that is beginning to recover after a challenging start to the year.

Cambridge’s Innovation Ecosystem Is Thriving and Attracting Global Investment

Cambridge remains at the centre of the UK’s innovation story, with world-class research, entrepreneurial ambition, and significant global investment, especially in deep tech sectors like quantum computing, artificial intelligence, and defence technology.

Over £2.5 billion in deep tech investment has poured into Cambridge in the past year, cementing the city’s reputation for early-stage innovation. This “flywheel effect” is attracting both talent and capital, and while the US still dominates in scale and risk appetite, the UK is making bold moves, especially in quantum and agentic AI.

Forum panellists emphasised the importance of a complete innovation ecosystem, world-class universities, ready access to capital, deep talent pools, and strong corporate partnerships. Collaboration between public, private, and academic sectors is seen as the lifeblood of sustained momentum. Cambridge’s unique blend of intellectual capital, product diversity, and global reach is a key differentiator, and the city’s collaborative culture continues to draw founders and investors from around the world.

UK Capital Markets and Startup Environment Are Rebounding, but Scaling Remains a Challenge

If the first half of 2025 was marked by caution and quiet, the latter half has been defined by resurgence. The UK’s capital markets, once subdued, are now stirring with fresh IPO activity and a renewed appetite for risk. Recent regulatory reforms, including dual-class shares and updated M & A rules, have made London a more attractive stage for ambitious listings. At the forum, investors noted a clear shift in priorities, growth is now valued at a premium, and the UK’s “big fish in a smaller pond” dynamic is drawing founders eager to make their mark.

The forum’s discussions revealed a market in transition: UK IPOs are rebounding, with investors seeing positive returns and the stigma around secondary offerings fading. The market is healthier, with fewer but larger deals and a renewed focus on scalable, profitable companies. Growth is king, but profitability is no longer an afterthought, investors want companies that can expand rapidly while charting a clear path to sustainable earnings.

Collaboration and Ecosystem Strength Are Key, but Talent and Funding Gaps Must Be Addressed

The forum emphasised the importance of a complete innovation ecosystem, strong universities, access to capital, deep talent pools, and robust public-private partnerships. Relationships with investors, built over years, are crucial, as is a seasoned leadership team. While the UK excels at launching start-ups, scaling them requires a shift in mindset, better tax incentives, and more patient, risk-tolerant capital.

UK start-ups excel at launching but often falter when it’s time to scale. There’s a call for a shift in mindset, embracing sales, marketing, and international expansion. Building the next “trillion-pound company” will require patience, ambition, and risk-taking. The US remains more bullish and risk-tolerant, offering faster access to capital, but the UK is catching up. The challenge now is to close the funding gap and nurture talent, especially as the US venture capital ecosystem remains decades ahead.

The mood at Cambridge was one of cautious optimism. The UK’s innovation engine is running strong, and with the right mix of capital, talent, and ambition, the next wave of global leaders could well emerge from Cambridge and beyond. If money truly follows ideas, the UK is poised to lead the charge, one bold founder at a time.