Sectors

AgriTech covers businesses applying technology to farming, food production, and the wider agricultural supply chain. This includes precision agriculture software, soil and crop monitoring hardware, livestock management platforms, vertical and controlled-environment farming operations, and supply chain traceability tools. UK exemplars BF would write about include **Muddy Machines**, which develops autonomous harvesting robots; **Agrimetrics**, a data platform serving the arable sector; and **LettUs Grow**, a Bristol-based controlled-environment growing technology company. BF tracks AgriTech because it sits at the intersection of food security, environmental regulation, and rural business investment. For operators in food production, logistics, or land management, the sector signals where efficiency gains are being found, which compliance burdens are being automated, and how the supply chain between farm and retailer is being restructured. Post-Brexit agricultural subsidy reform has accelerated technology adoption among UK farmers, making the sector a useful indicator of broader rural business conditions. Open questions for the sector include how quickly precision agriculture tools will reach smaller and tenant farming operations, and whether the economics of vertical farming can reach viability without sustained subsidy. The degree to which **Environmental Land Management** scheme requirements will drive demand for monitoring and reporting technology remains unresolved, as does the pace at which robotics will address persistent labour shortages in horticulture.

The AI sector covers organisations that build, deploy, or commercialise artificial intelligence and machine learning systems. This includes foundation model developers, applied AI software companies, AI infrastructure providers, and specialist consultancies embedding AI into vertical markets. UK exemplars BF would write about include **Wayve**, which is developing autonomous driving systems, **Synthesia**, which produces AI-generated video at scale, and **Faculty**, which applies AI to complex operational and public-sector problems. BF tracks this sector because AI adoption is reshaping cost structures, hiring decisions, and competitive positioning across almost every industry an SME or scale-up operates in. Watching which AI companies attract capital, which products reach commercial maturity, and which enterprise contracts are signed reveals where practical capability is ahead of the hype and where it still falls short. For operators, the sector signals what tooling is becoming viable, what skills are growing scarce, and where incumbents are most exposed to displacement. The open questions for the near term are significant. Can foundation model providers build sustainable unit economics, or does the cost of compute erode margins indefinitely? Will sector-specific regulation, particularly around high-risk AI applications, arrive quickly enough to create compliance burdens before smaller operators have standardised their own AI use? And as AI tooling commoditises, does competitive advantage shift entirely to the organisations with the best proprietary data rather than the best models?

**B2B SaaS** covers software businesses that sell subscription-based products to other organisations, delivering applications via the cloud rather than on-premise installation. The sector spans everything from vertical-specific tools serving a single industry to broad horizontal platforms used across many. UK exemplars BF would write about include **Sage**, which has repositioned its accounting heritage around cloud subscriptions; **Contentsquare** (with significant UK operations), which sells digital experience analytics; and **Paddle**, a revenue delivery platform built for software vendors themselves. BF tracks this sector because its commercial mechanics matter directly to operators. Pricing model, churn rate, net revenue retention, and the cost of acquiring versus expanding a customer are all visible signals of whether a SaaS business is structurally sound or burning cash to mask weak fundamentals. For an SME evaluating a SaaS vendor as a supplier, or a scale-up benchmarking its own model, understanding how these businesses are built and where they struggle is operationally useful. Several tensions will shape the sector over the next one to two years. Can mid-market SaaS vendors hold pricing as procurement scrutiny tightens and buyers consolidate their software stacks? How far will AI-assisted features shift customer expectations around what a baseline product should include, and what that means for smaller players who cannot match the R&D spend of larger platforms? And as more SaaS contracts come up for renewal in a tighter spending environment, which retention strategies are proving durable?

The biotech sector covers companies that apply biological and biochemical processes to develop products and services, primarily in healthcare, agriculture, and industrial applications. In the UK context, this typically means drug discovery firms, genomics businesses, diagnostics developers, and contract research organisations. Operators BF would write about include **Oxford Biomedica**, a cell and gene therapy manufacturer; **Immunocore**, a T-cell receptor therapy company; and **Benchmark Holdings**, which applies biotechnology to aquaculture and animal health. BF tracks this sector because it sits at the intersection of deep science and commercial execution, and the gap between the two is where most operator-relevant decisions are made. Funding cycles, licensing deals, manufacturing partnerships, and regulatory milestones all shape how a biotech business is structured and run. For operators in adjacent sectors, such as contract manufacturing, laboratory services, or specialist recruitment, understanding biotech's commercial rhythms matters directly. The open questions for the near term are substantial. How will the UK's post-Brexit regulatory relationship with the European Medicines Agency continue to affect approval timelines and market access? Can the domestic funding environment sustain early-stage companies through longer development cycles, or will more firms seek listings and capital abroad? And as AI-assisted drug discovery matures, what does that mean for the size and shape of the research teams that biotech businesses need to build?

Climate tech covers companies building products, services, and infrastructure that reduce greenhouse gas emissions or help organisations adapt to a changing climate. In the UK, this spans renewable energy developers, carbon accounting platforms, sustainable materials firms, grid-flexibility software providers, and climate risk analytics businesses. UK-based operators such as **Octopus Energy**, **Xero**-integrated carbon tools like **Sweep**, and battery storage specialist **Zenobe Energy** represent the breadth of activity BF monitors in this space. BF tracks climate tech because regulatory pressure and corporate procurement decisions are reshaping supplier relationships across almost every industry. UK SMEs face growing requirements around emissions reporting, whether through their own obligations or those of larger customers demanding supply-chain data. Understanding which climate tech providers are gaining traction, which business models are proving durable, and where public funding is flowing helps operators make informed decisions about their own compliance, procurement, and positioning. Several tensions will shape the sector over the next one to two years. Can carbon accounting platforms standardise their methodologies sufficiently to satisfy auditors and regulators, or will fragmentation persist? Will the economics of clean energy infrastructure remain attractive as interest rates and supply-chain costs fluctuate? And as the UK refines its net-zero policy framework, which compliance obligations will extend meaningfully to smaller businesses, and on what timeline? These are the questions operators in adjacent sectors need to watch closely.

Cybersecurity covers organisations that protect digital infrastructure, data, and identities from unauthorised access, disruption, or theft. The sector spans managed security service providers, threat intelligence firms, identity and access management specialists, endpoint protection vendors, and penetration testing consultancies. UK exemplars BF would write about include **Darktrace**, the Cambridge-based AI-driven threat detection firm; **NCC Group**, which offers assurance and managed services; and **Sophos**, a long-established endpoint and network security vendor with deep roots in the UK mid-market. BF tracks this sector because cybersecurity spending decisions touch every operator, regardless of industry. Watching which vendors win contracts, which threat categories are driving budget allocation, and how the insurance and compliance landscape shifts gives operators a clearer picture of where their own risk exposure sits. Regulatory pressure, particularly from frameworks such as the **UK Cyber Essentials** scheme and evolving ICO enforcement, means that what happens inside this sector has direct operational and legal consequences for SMEs and scale-ups. Open questions for the next 12-24 months include: how will AI-assisted attack tooling change the baseline threat level for smaller organisations that lack dedicated security teams? Will consolidation among managed service providers improve or reduce quality and choice for the mid-market? And as cyber insurance underwriters tighten their requirements, which compliance standards will become the practical minimum for coverage eligibility?

Companies built on science and engineering breakthroughs: chips, robotics, quantum, materials, novel compute.

E-commerce covers businesses that sell goods or services primarily through digital channels, including pure-play online retailers, marketplace operators, and direct-to-consumer brands that have moved away from wholesale or physical-only distribution. UK exemplars BF would write about include **Gymshark**, which scaled from a garage operation to a global brand without a traditional retail estate, **Made.com** (whose collapse and subsequent acquisition illustrates the sector's structural risks), and **Moonpig**, a listed business navigating the shift from novelty to habitual consumer behaviour. BF tracks e-commerce because it sits at the intersection of several pressures that matter to SME and scale-up operators: fulfilment economics, customer acquisition costs, platform dependency, and the cost of returns. Watching how businesses in this sector manage contribution margins, warehouse footprints, and their reliance on **Meta and Google** for paid traffic reveals patterns that apply well beyond retail. The sector also acts as an early indicator for shifts in consumer confidence and discretionary spending. The open questions shaping the next phase include whether rising fulfilment and energy costs will permanently compress margins for mid-sized operators, how quickly social commerce through platforms such as **TikTok Shop** will redistribute discovery and purchasing behaviour, and whether the regulatory environment around returns policies and sustainability disclosures will create meaningful compliance costs. The tension between owning a customer relationship directly and the reach offered by marketplaces such as **Amazon** remains unresolved for most operators at scale.

EdTech covers organisations that deliver or support learning through digital means: online course platforms, adaptive learning software, professional development tools, language learning apps, and the infrastructure that schools, universities, and employers use to manage and assess learning. UK exemplars BF would write about include **Multiverse**, which builds apprenticeship and skills programmes for employers; **Sparx Learning**, which provides AI-assisted maths tools for secondary schools; and **FutureLearn**, the open online course platform spun out of the Open University. BF tracks EdTech because it sits at the intersection of several pressures that matter to SME and scale-up operators: skills shortages, the cost of staff development, and the growing expectation that training can be delivered flexibly and at scale without large L&D teams. Watching this sector reveals how businesses are rethinking workforce development, what procurement cycles look like when selling into schools or corporates, and how unit economics shift as platforms move from consumer to B2B models. The open questions for the sector centre on sustainability and regulation. Can platforms that grew on venture funding build revenue models that hold without subsidy or institutional contracts? How will Ofsted scrutiny of apprenticeship quality, and potential changes to the Apprenticeship Levy, reshape demand for employer-facing providers? And as generative AI tools become embedded in learning products, what questions will buyers, regulators, and learners raise about assessment integrity and data use?

The **fintech** sector covers companies that apply software and data infrastructure to financial services, including payments processing, digital banking, lending platforms, insurance technology, regulatory compliance tools, and personal finance management. UK exemplars BF would write about include **Wise**, which reshaped international money transfers; **Starling Bank**, which built a full current-account business on a cloud-native core; and **Funding Circle**, which connects small businesses with alternative lending. The sector spans early-stage startups, established scale-ups, and the technology arms of incumbent financial institutions. BF tracks fintech because it sits at the intersection of two things that matter directly to SME and scale-up operators: the cost and availability of financial services, and the regulatory environment that governs how those services are delivered. Shifts in payment rails, open banking standards, or credit underwriting models can change what operators pay, what data they share, and which providers they can access. Watching the sector reveals where friction is being reduced and where new compliance obligations are emerging. Several questions will shape the sector over the next two years. Can challenger banks reach sustainable profitability without compromising the product simplicity that attracted customers? How will the **Financial Conduct Authority's** evolving stance on consumer duty and AI-driven credit decisions affect product design? And as open banking matures into open finance, which operators will benefit from richer data portability and which will face new obligations around how they handle it?

Technology applied to food production, distribution, and alternative protein and ingredient categories.

The gaming sector covers companies involved in the development, publishing, distribution, and monetisation of video games across console, PC, mobile, and cloud platforms. UK exemplars BF tracks include **Frontier Developments**, the Cambridge-based studio behind simulation titles such as Planet Coaster and Elite Dangerous; **Team17**, the Wakefield-based publisher and developer known for the Worms franchise and its indie label; and **Keywords Studios**, which provides outsourced art, localisation, and quality assurance services to studios worldwide. BF tracks gaming because it sits at the intersection of technology, intellectual property, and consumer behaviour in ways that matter beyond the sector itself. Licensing models, subscription economics, and the shift from boxed product to live-service revenue affect how studios manage cash flow, headcount, and long-term IP valuation. For operators in adjacent sectors, including payments, cloud infrastructure, and creative services, gaming often signals where consumer digital spending is heading. Several tensions will shape the sector over the next one to two years. Can mid-sized UK studios sustain the investment required for live-service titles without the balance sheets of major publishers? How will the **Competition and Markets Authority's** ongoing scrutiny of platform dominance and acquisitions affect deal-making? And as generative AI tools enter art and code pipelines, what does that mean for studio headcount, creative ownership, and the outsourcing businesses that have grown around traditional production workflows?

Health tech covers organisations that apply digital tools, software, and connected hardware to healthcare delivery, clinical administration, and patient monitoring. UK exemplars BF would write about include **Babylon Health**, which built AI-driven triage and consultation services; **Accurx**, whose messaging platform sits inside NHS GP workflows; and **Huma**, which develops remote patient monitoring software used in clinical trials and chronic disease management. The sector spans electronic health records, diagnostic imaging software, wearables, telehealth platforms, and the data infrastructure that connects them. BF tracks health tech because it sits at the intersection of public procurement and private capital, a combination that creates distinct commercial dynamics for SMEs and scale-ups. Selling into the NHS requires navigating procurement frameworks, information governance standards, and clinical evidence requirements that differ substantially from selling into private enterprise. Understanding how contracts are won, renewed, or lost here reveals a great deal about operational resilience and revenue predictability. The open questions shaping the sector include how quickly NHS integrated care systems will consolidate their supplier relationships, and whether that consolidation favours established platforms or creates openings for specialists. The regulatory pathway for AI-assisted diagnostics remains unsettled, raising questions about which clinical validation standards will become the baseline. There is also an unresolved tension between interoperability ambitions, particularly around shared patient data, and the commercial incentives that lead vendors to build closed ecosystems.

HR Tech covers software and services that automate or improve how organisations attract, manage, develop, and retain people. The sector spans applicant tracking systems, payroll platforms, workforce analytics tools, employee engagement software, and learning management systems. UK operators in this space include **Personio**, which targets SME HR administration, **Ciphr**, a long-standing UK payroll and HR platform, and **Beamery**, which focuses on talent acquisition and workforce planning for larger employers. Business Fortitude tracks HR Tech because people costs typically represent the largest single line in an SME's budget, and the tools an operator chooses shape hiring speed, compliance exposure, and staff retention. Watching this sector reveals where the friction points are in the employment lifecycle, which regulatory pressures are driving software adoption, and how AI-assisted features are moving from novelty to standard expectation in core HR workflows. Open questions for the sector include how smaller platforms will respond if larger payroll and ERP providers continue absorbing HR functionality into broader suites, whether AI-driven candidate screening tools will face tighter regulatory scrutiny around bias and data handling, and how the shift toward flexible and fragmented workforces will change the baseline feature set operators expect from an HR platform.

Technology applied to underwriting, distribution, claims, and reinsurance across personal and commercial lines.

The **marketplaces** sector covers platforms that connect buyers and sellers without necessarily holding inventory, taking a commission, listing fee, or data advantage in return. BF tracks businesses across consumer-to-consumer, business-to-consumer, and business-to-business models, including horizontal platforms such as **eBay UK** and **Amazon Marketplace**, vertical specialists such as **Auto Trader** and **Rightmove**, and newer entrants targeting underserved niches in trade, services, and secondhand goods. For UK operators, marketplaces matter in two directions. As a sales channel, they offer reach but impose margin pressure, algorithmic dependency, and the risk of commoditisation. As a business model, they represent one of the few structures that can scale without proportional cost growth, making them attractive to investors and acquirers alike. Watching how established platforms adjust their fee structures, advertising products, and seller policies reveals where the balance of power between platform and merchant is shifting. The open questions for this sector centre on a handful of persistent tensions. Can vertical marketplaces sustain premium positioning as horizontal giants expand into their categories? How will evolving consumer protection and digital markets regulation reshape the obligations platforms owe to both sides of their market? And as **artificial intelligence** begins to influence search, discovery, and pricing, which participants, platforms or sellers, capture the resulting efficiency gains?

**MarTech** covers the software and data platforms that businesses use to plan, execute, measure, and optimise marketing activity. The sector spans **customer data platforms (CDPs)**, email and SMS automation tools, attribution analytics, programmatic advertising technology, and CRM-adjacent products. UK operators in this space include **Dotdigital**, which serves mid-market brands with cross-channel engagement tools, **Mention Me**, which has built a referral marketing platform used across e-commerce and financial services, and **Adverity**, an analytics and data integration business with a strong UK presence. Business Fortitude tracks MarTech because it sits at the intersection of marketing spend and operational efficiency, two levers that SMEs and scale-ups pull constantly. Decisions about which platforms to adopt, consolidate, or abandon have direct consequences for cost structures, team headcount, and the reliability of growth data. When MarTech vendors change pricing models, deprecate integrations, or get acquired, operators face real disruption to their workflows and reporting. Several tensions will shape the sector over the next one to two years. How will tightening data-privacy regulation, including evolving interpretations of UK GDPR and the phased changes to third-party cookies, alter what these platforms can actually deliver? Will the wave of AI-generated content features in MarTech products improve measurable outcomes, or simply add noise to already crowded toolsets? And as consolidation continues among vendors, will mid-market operators find themselves locked into larger suites, or will specialist point solutions remain viable alternatives?

The mobility sector covers businesses involved in how people and goods move, with a particular focus on alternatives to traditional private car ownership and conventional logistics. This includes **electric vehicle** manufacturers and charging infrastructure operators, ride-hailing and car-sharing platforms, micro-mobility providers (e-scooters, e-bikes), fleet management software, and last-mile delivery specialists. UK operators such as **Arrival**, **Zap-Map**, and **Lime** sit within this space, alongside the growing cluster of firms building software and data layers on top of physical transport networks. Business Fortitude tracks mobility because it sits at the intersection of infrastructure investment, regulatory change, and shifting consumer behaviour. For SMEs, the sector is a direct input cost question: how fleets are powered, how staff commute, and how goods reach customers are all being repriced and restructured simultaneously. Watching which business models attract sustained commercial contracts, rather than pilot schemes, helps operators distinguish durable suppliers from those dependent on subsidy or novelty. The open questions for the next two years are significant. Will public charging infrastructure scale fast enough to make EV fleet conversion practical for businesses outside major urban centres? Can micro-mobility operators reach unit economics that do not rely on municipal subsidy? And as e-scooter regulation in the UK moves toward a settled framework, which platforms are positioned to convert trial licences into long-term operating rights? How consolidation plays out among the smaller fleet-software providers is also worth watching closely.

**PropTech** covers technology businesses that serve the property market: residential and commercial estate agencies, lettings platforms, mortgage and conveyancing tools, property management software, construction technology, and data analytics applied to real estate. UK exemplars BF would write about include **Rightmove**, **Goodlord**, and **Coadjute**, alongside a wide range of earlier-stage operators building point solutions for landlords, developers, and agents. BF tracks PropTech because the sector sits at the intersection of a large, regulation-heavy industry and fast-moving software adoption. For SME operators, the sector is a signal of where friction in property transactions is being reduced, where compliance costs are shifting, and where incumbent agents and developers face margin pressure from digital-first competitors. Watching which platforms gain traction among independent landlords or smaller housebuilders reveals broader patterns in B2B software adoption. The open questions for the sector centre on consolidation and regulation. Will the current generation of point solutions merge into broader platforms, or will the market remain fragmented across lettings, sales, and management? How will evolving leasehold reform and renters' rights legislation reshape demand for compliance tooling? And as mortgage rates and transaction volumes fluctuate, which PropTech business models prove resilient when deal flow contracts?

**RegTech** covers technology businesses that help organisations manage regulatory compliance, reporting, risk monitoring, and audit trails more efficiently than manual processes allow. The sector spans identity verification and KYC platforms, anti-money-laundering screening tools, automated regulatory reporting systems, and data governance software. UK-based operators in this space include **Encompass Corporation**, which automates corporate KYC workflows; **ComplyAdvantage**, which applies machine learning to financial crime risk data; and **Neopay**, which provides compliance consultancy and managed services to payment firms navigating FCA requirements. Business Fortitude tracks RegTech because compliance cost is a direct operational burden for SMEs and scale-ups in financial services, fintech, legal, and healthcare. Watching this sector reveals how the regulatory perimeter is shifting, which obligations are becoming harder to satisfy manually, and where third-party solutions are displacing in-house compliance headcount. For a growing firm, the build-versus-buy decision on compliance infrastructure is a material one, and the RegTech market is where that decision gets made. Several open questions will shape the sector over the next two years. Can RegTech vendors demonstrate measurable cost reduction to budget-constrained buyers, or does procurement remain concentrated among larger institutions? How will the FCA's continued focus on Consumer Duty and operational resilience translate into new software demand? And as AI-generated outputs increasingly underpin compliance decisions, what liability questions arise when an automated system produces a flawed risk assessment?

Retail tech covers the software, hardware, and data infrastructure that powers how goods are sold, fulfilled, and returned. This includes point-of-sale and payments platforms such as **Lightspeed** and **Epos Now**, inventory and supply-chain tools, customer data and loyalty systems, and the warehouse automation and last-mile logistics software that sits behind both physical and online retail. Marketplaces, headless commerce platforms, and in-store analytics providers all fall within scope. Business Fortitude tracks retail tech because the sector sits at the intersection of consumer behaviour, operational efficiency, and capital allocation. For an SME operator, the choices made here, from which payments stack to adopt to how returns are processed, directly affect margin and customer retention. Watching which platforms are gaining or losing merchant adoption, and where consolidation is occurring among vendors, gives operators a clearer picture of where the market is heading before they commit to long-term contracts. The open questions for the sector centre on a handful of unresolved tensions. Can smaller independent retailers absorb the cost of upgrading ageing infrastructure while margins remain under pressure? Will unified commerce platforms, which promise to merge online and offline data into a single view, deliver on that promise at a price point accessible to scale-ups? And as AI-driven demand forecasting moves from enterprise to mid-market, which operators will capture the efficiency gains and which will be left managing legacy systems that cannot integrate with newer tooling?

The venture capital sector comprises firms that deploy pooled capital into early-stage and growth-stage businesses in exchange for equity, typically targeting companies with high-growth potential that cannot yet access conventional debt financing. BF tracks firms across the full spectrum, from pre-seed specialists to later-stage growth funds, including names such as **Balderton Capital**, **Octopus Ventures**, and **Seedcamp**, alongside the corporate venture arms and regional funds that have expanded the UK's investment geography beyond London. For SME and scale-up operators, the VC sector functions as a leading indicator of where risk appetite and sectoral enthusiasm are shifting. Which industries are attracting term sheets, which funding rounds are being extended or repriced, and where investors are pulling back all carry practical intelligence, even for businesses that are not raising capital. Supplier relationships, talent markets, and competitive dynamics are frequently shaped by where VC money is flowing or withdrawing. The open questions for this sector centre on several structural tensions. How will the relationship between UK venture funds and institutional limited partners evolve as pension reform debates continue? Can regional funds outside the South East sustain deal flow and follow-on capacity? And as the gap between early-stage valuations and exit opportunities persists, how will fund managers balance portfolio support against the pressure to return capital to investors?