Britain’s startup scene: Women founders, Birmingham & Manchester, AI-washing

UK-based venture capital firm Fuel Ventures has released a decade-long retrospective on the 30,000 pitch decks it has received since its launch in 2014.

The report noted a 45 percent increase in female founders pitching over the last ten years, with a notable 30 percent rise in the past five. Despite this, the number of investments in female founders continues to decline across Europe. 

Perhaps unsurprisingly, “AI” was the most mentioned term in pitch decks over the past year, appearing in 86 percent of submissions—beating out other favourite buzzwords like “disruption” (61 percent), “scale” (52 percent), “sustainability” (45 percent), and “pivot” (32 percent).

However, the VC flagged a growing trend of “AI washing,” with a 20 percent rise in companies mentioning AI in their decks without any actual AI capability.

The data debunks myths around age and innovation. Fuel reports a 35 percent increase in founders over 40, pointing to a growing trend of experienced professionals launching startups later in their careers.

One of the standout insights from the report is that 76 percent of successful pitches came from startups with co-founders, reinforcing the long-held industry view that founding teams are often more attractive to investors than solo entrepreneurs due to their ability to share skills and responsibilities.

While London remains the UK’s startup epicentre, the report notes significant growth in other cities. Birmingham and Manchester saw increases in founder activity of 120 and 95 respectively, suggesting a decentralisation trend supported by the rise of remote work and regional investment initiatives.

This regional shift aligns with a wider policy push from the UK government to "level up" economic opportunities outside the capital.

“Every pitch deck tells a story, some better than others,” said Mark Pearson, founder of Fuel Ventures. “We’re fortunate to have a front-row seat to the ambition, creativity, and resilience amongst the next generation of entrepreneurs - it’s something that really doesn’t get old.”

Pitch decks sent on Tuesdays were more likely to receive a follow-up compared to those submitted on Fridays, perhaps due to fresher minds and inboxes.

For founders preparing their next pitch, perhaps the key takeaways are simple: work with a team, be authentic about AI, and, if you want that follow-up - send it on a Tuesday.

Photo by William McCue