UK regional VC funding is set for a major shake-up as Manchester-based Praetura Ventures and Edinburgh’s Par Equity merge to create PXN Group, a £670M investment powerhouse aimed at scaling early-stage businesses outside London and the Southeast.
As venture capital flows increasingly favour the capital, founders in the North of England, Scotland and Northern Ireland often face an uphill battle when fundraising. Many early-stage companies in these regions struggle to access equity that matches their ambition, despite the presence of world-class universities, deeptech talent, and strong sector specialisms. PXN Group intends to reverse that trend by injecting significantly more capital into innovation-led growth across the UK’s underserved regions.
Subject to Financial Conduct Authority approval, the merger combines two of the UK’s fastest-growing firms outside the Southeast. Together, PXN Group will offer equity investments from £200K to £8M across a range of sectors, with an emphasis on SaaS, fintech, healthtech, climate tech and advanced technologies such as robotics and AI. The group will also continue delivering award-winning tax-efficient investment products, including EIS and inheritance tax planning services, through its financial adviser-focused platform.
PXN Group brings new era of regional investment in the UK
The combined firm will operate from existing offices in Manchester, Edinburgh, Leeds and London, managing 115 portfolio companies with no change to individual fund mandates. Both Par Equity and Praetura have more than tripled their assets under management since 2021, and this strategic merger amplifies their capacity to back founders in geographies too often bypassed by mainstream capital.
Dave Foreman, founder of Praetura Ventures and now CEO of PXN Group, said, “This isn’t just a merger – it’s the start of something greater. PXN Group combines deep regional roots, complementary strengths, and a shared belief that founders deserve more than just money. We’re creating a platform built to last, to lead and deliver real impact in the places that matter most.”
Paul Munn, founder of Par Equity and now Executive Chair of PXN Group, added, “We’ve always believed the North can produce globally significant companies – but it needs the right capital and support. PXN Group is built in the North, for the North, and this merger gives us the scale to do more of what we do best: back the most ambitious founders and help them build category-leading businesses.”
A tale of two PXN founders and a shared vision
Foreman and Munn bring complementary backgrounds to the helm of PXN. Foreman, based in Manchester, launched Praetura Ventures in 2019 with a clear mission to offer founders “more than money”, combining capital with expert support. His firm quickly became one of the fastest-growing VCs in the UK, backing companies like Modern Milkman, AccessPay and Street Group.
Munn co-founded Par Equity in 2008 with a unique hybrid model of discretionary funds and a powerful angel network. His experience spans everything from early-stage venture to large-scale institutional fundraising. A vocal advocate for Northern entrepreneurship, Munn has helped build one of the UK’s top-performing EIS funds and led the firm’s expansion into natural capital investments.
The two met through shared deal flow and regional collaboration and have long advocated for closing the UK’s geographic funding gap. Both founders bring deep knowledge of their local markets, and a shared belief in backing companies outside the traditional tech corridors.
What makes PXN Group different?
PXN Group is positioning itself as a unique force in the venture capital market, aiming to support founders throughout their growth journeys, not just during fundraising rounds. Unlike firms that focus solely on capital deployment, PXN combines sector-specific insight with long-term advisory support, geographical diversification, and institutional-grade investment structures.
Praetura’s investment strategy has been underpinned by its £100M NPIF II North West Equity Fund mandate, and the GMC Life Sciences Fund by Praetura, in partnership with GMCA and Enterprise Cheshire & Warrington. It also operates one of the UK’s first regionally focused VCTs.
Par Equity, meanwhile, was an early backer of breakout success stories like Current Health and Symphonic Software. In 2023, it launched a £75M institutional Scale-Up Fund and continues to be the largest investment partner for the British Business Bank’s Regional Angels Programme. It has also expanded into sustainability, developing a large-scale woodland and peatland restoration initiative with Aviva Investors in Glen Dye Moor, Scotland.
What comes next for the £670M VC group?
Looking ahead, PXN Group plans to introduce new initiatives and partnerships aimed at bridging the UK’s regional investment gap. In the next year, it will unveil new programmes to turn Northern-founded innovation into global companies, while also extending its reach into public sector partnerships and retail investor products.
PXN will continue to support financial advisers with a broader portfolio of solutions and deepen its offering in lending through its Praetura Lending arm, which complements its equity business with secured capital solutions for UK SMEs.
While the group has no immediate plans to launch a PXN-branded fund, both Par and Praetura will continue to deploy capital through their existing structures. The merger enables shared infrastructure, expanded resources, and greater market visibility for high-potential businesses seeking early or growth-stage backing.
More exits, more impact
According to Munn, the North of the UK is “not short of opportunity, but the scarce resource is the funding.” Universities such as Edinburgh, Manchester and Leeds generate leading-edge research in data science, robotics and materials science, yet lack the venture infrastructure to match. By scaling to £670M in assets under management, PXN Group aims to drive exits and reinvestment cycles in regional ecosystems.
Foreman added that “the big thing the early-stage ecosystem really needs is to start seeing on a regular basis really successful exits that founders have taken capital, created something consequential, exited and then reinvested back into the startup ecosystem.”
As capital continues to concentrate in the Southeast, PXN Group is making a clear bet that the next wave of UK tech champions will come from further north. With a bold vision, a seasoned leadership team and a combined portfolio already driving impact, the group aims to put UK regional VC funding firmly back on the map.
