Matt Jones, Investor in the Belfast office of BGF – the UK and Ireland’s most active growth capital investor, shares his practical insights for tech founders raising in today’s environment.
Over the past decade, Northern Ireland has seen a quiet revolution and built strong fundamentals as a thriving technology ecosystem. A resilient entrepreneurial spirit, and a highly skilled, adaptable workforce have created an environment where world leading innovation flourishes.
Today, local startups are starting to punch well above their weight on the global stage, leveraging the latest technologies and AI capabilities across a host of sectors including cybersecurity, fintech, healthtech and more.
The opportunity for technology investing here is real, with a surge of private capital deployment enabling native businesses to realise value and accelerate growth in recent years. Yet, in the current global economic backdrop, significant challenges remain.
At BGF we back ambitious businesses as a minority investor. That means we don’t take control – we support management teams to grow, scale and build long-term value through a partnership approach. Northern Ireland presents a strong opportunity for technology investing – and realising it will require ambitious thinking from founders and a shared understanding of the evolving environment.
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We are operating in a more complex economic environment than 12–18 months ago, but our conviction in long-term technology investment remains strong. In today’s more disciplined market, quality stands out — capital flows to founders with clarity of vision, strong fundamentals, and the resilience to navigate evolving expectations.
Founders who approach investors today the same as they did two years ago with high burn rates, vague growth plans and short follow-on requirements are going to struggle. The market has moved on and so must the thinking.
So what does it take to raise capital in today’s environment — and how can founders position themselves to succeed?
· Clear and defendable point of difference: Founders need to explain why they are better: through technology, customer insight, intellectual property, or execution. We want to see a product or service that solves a real, urgent problem that cannot be ignored, not just something that feels slightly more efficient.
· Adaptability in business operations: in an unpredictable environment, we’re looking for teams that can pivot quickly, manage costs carefully, and build flexibility into their plans. That could mean rethinking go-to-market strategies, reshaping hiring plans and reallocating internal resource. Founders need to have an acute awareness of and a contingency plan for potential challenges and be live to them.
· Rigorous planning: financial models and budgets need to be continuously tested under different scenarios with clear visibility on unit economics, and evidence that cash is
being managed tightly. A robust finance and reporting function identifies warning signs in advance, so a strong understanding of key metrics and what they mean for the business is imperative for management.
· Longer-term thinking: Founders should have a vision on where the business is heading in the next 3-5 years and what type of business they are ultimately trying to build. Whilst the path to scale will change as the business adapts to challenges, a sharp focus and understanding of what the business needs to look like for an exit will enable the adapts with this in-tact.
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At BGF we are active in Northern Ireland and are looking for businesses that are not only innovative but have applied critical thinking to the above. Understanding and being honest about challenges you will face enables us to assess how to best support the team and leverage our national Value Creation and Talent Network functions. These difficult conversations ensure we enter a partnership aligned, with a clear awareness and focus of the risks and potential mitigants.
The most successful founders will be those who adapt, stay focused, and build with intent — with the right support behind them.
