Northern Gritstone CEO: Exits to US acquirers not a failure

Duncan Johnson, CEO of Northern Gritstone, has defended the sale of Northern England's tech companies to US acquirers, stating it is a sign of success rather than failure. Johnson argues that the growth of these companies and their eventual sale to more established markets signify the ecosystem's maturity.

Northern Gritstone, established in 2022 to foster the tech scene in Northern England, has invested over £140m into 15 companies. The firm plans to open a new office in San Francisco to expand its network and support its portfolio companies in their internationalisation efforts.

"We are not seeking to hold onto our investments forever," Johnson stated in an interview. "The drive for growth and success can lead to a company being acquired after it has reached a certain stage of maturity. This is not a failure, but likely a sign of successful growth and realised potential."

The company has secured significant funding, including an additional £30m investment last year. Johnson suggests that increasing the fund size is necessary to enable companies to grow and compete globally.

While Northern Gritstone has a strong focus on regional development in Northern England, the firm actively seeks strategic partnerships and potential acquirers that can help its portfolio companies reach their next growth phase. However, Johnson emphasises that exiting to foreign buyers is not the sole objective; expanding international presence is also crucial.