Manchester-based Praetura Ventures is a financial services company specialising in early-stage Venture Capital investment.

The company manages the British Business Bank’s Northern Powerhouse Investment Fund II Praetura Equity Finance fund and has a pot £100m to invest in North West companies in investments up to £5m.

Praetura has also launched a first-of-its-kind cohort-investment programme called PraeSeed, offering startups across the North the opportunity to receive £200,000 investment following a tailored six-week programme built around three core pillars: inspire, educate and assess.

Below, Jess Jackson, investment manager at Praetura Ventures and programme director of PraeSeed, shares tips for Lancashire startups on gaining equity investment and discusses the growing investment community in Lancashire.

Why is external finance important for scaleup businesses?

For scaleup businesses, external finance can be transformative, enabling investment to turbo charge growth through product development, hiring and marketing. Equity funding is ideal for businesses aiming to capture a new or growing market quickly. The founders we support often tackle innovative ventures with higher risk, making debt funding harder to secure.

With the right investor partner, you gain more than money. At Praetura, we contribute expertise, mentorship, and access to our network. Our support includes initiatives like our Portfolio Toolkit which reduces procurement time and cost for services and our Operational Partner Programme to help founders navigate challenges and grow strategically.

What do equity investors look for when considering an equity investment?

Our investment playbook focuses on our ‘6Ms model’ which runs through three filtered phases:

The Initial Filter

• Model – Can the business model scale quickly? Indicators include recurring revenue, profit margins, repeatable products, and operational leverage.
• Market – Is the market large enough? We assess competition and the potential to dominate an unserved niche.
• Money – Will our investment make a difference? We evaluate fund usage and the business’ capital structure for long-term returns.

The Selection Filter

• Management – Does the senior leadership team have the necessary skills to scale?
• Momentum – Is there strong growth momentum, signalling product-market fit?

The Praetura Filter

• Are we the right partner to add genuine value to this business?

Do you think businesses are more cautious about equity investment than debt?

The North’s venture ecosystem is still young compared to London or the US West Coast, meaning there is still quite a lot of scepticism and a lack of awareness around equity. Historically, businesses relied on debt as equity wasn’t an option. However, perceptions are shifting, with equity now seen as a better fit for many ambitious, high-growth companies.

As the ecosystem matures and success stories like the Lancashire-founded Modern Milkman (the UK’s fastest-growing business, according to the FT) emerge, founders are increasingly open to equity finance. They’re realising that while equity dilutes ownership, the right investor can add significant value and accelerate growth.

How do you see the Lancashire investment community developing over the coming years?

Lancashire has thrived in recent years, becoming a real hive of activity. A forward-thinking public sector and a strong talent pool from local universities have driven its founder community’s growth, attracting new investors to the region.

The focus now is to sustain this momentum by drawing in more angel investment and venture funds. Fraser House Hub in Lancaster exemplifies the power of a collaborative ecosystem, hosting successes like Fuuse and Relative Insight, who actively support early-stage founders.

What do businesses gain from securing equity investment aside from capital?

Equity investment is more than just financial support, a good investor becomes a partner who helps guide your business through its next growth phase.

At Praetura, we work closely with our portfolio using our People Strategy Execution model, sharing insights from our experience. Our Operational Partner model provides founders with independent mentors who have successfully scaled businesses like Apple, Beerhawk, and Dr. Martens.

A strong investor also helps you access future capital. Generally, venture capitalists are in constant communication with one another, and their introductions can help you get access to more funding from larger investors. This can save you doing a lot of the groundwork and help you focus on the business.

What are your top tips for Lancashire scaleup businesses in securing investment?

Focus on your story: Clearly explain the problem you’re solving and why your solution is needed, now.

Demonstrate capital efficiency: Show how you’ll make meaningful progress with the funds you’re raising, proving smart use of investor capital.

Build relationships early: Start talking to investors before you need funding to gather feedback, refine your brand, and improve your chances when the time is right.

Leverage Lancashire’s strengths: Highlight the unique advantages of being based in Lancashire – a strong talent pool, supportive local networks, and lower operational costs. These can all make your business more attractive to investors.

Know your metrics: Understand your key numbers and growth drivers to demonstrate how you’ll invest in your business.