A record year for the UK technology sector – TECHNOLOGY RESELLER

The share of UK regions in record investments in British technology businesss

The Department of Digital, Culture, Media and Sport has declared 2021 the “best year” for the UK tech sector with significant growth in investment in venture capital, IT vacancies, unicorns and future grains.

Growth in the UK technology sector was driven by new investment of £ 29.4 billion, up 230% from £ 11.5 billion in 2020.

This is the largest annual increase in money raised by startups and companies in the UK since 2013/14, when investment rose from £ 1.5bn and £ 3.5bn.

The £ 29.4 billion raised by UK technology companies accounted for one-third of total revenue in the European technology ecosystem in 2021 (£ 89.5 billion) and two to three times more than investment in Germany (14 , £ 7 billion) or France (£ 9.7 billion). ).

More than a third (37%) of the money coming into UK technology comes from the US, up from 31.5% last year, most goes to financial technology and medical technology companies. More than 28% of British venture capital came from domestic capital.

A record investment last year helped create 29 unicorns (technology companies worth more than $ 1 billion), including e-commerce the Depop platform, the Motorway car sales platform, the Marshmallow insurance breaker and the Starling Bank contender bank. The UK now has 115 unicorns, which is more than France (31) and Germany (56) combined.

Regional nodes

Notably, nine of the 29 unicorns formed in 2021 are based outside London and the southeast, including Interactive Investor in Glasgow, Vertical Aerospace in Bristol and Touchlight Genetics in Hampton.

In total, almost £ 9 billion of all venture capital investment went to startups and scaling outside of London and the South East.

Raise the level of Power Tech League 2021

Cambridge, 2 Manchester, 3 Oxford, 4 Edinburgh, 5 Bristol, 6 Leeds, 7 Birmingham, 8 Newcastle, 9 Cardiff, 10 Belfast

A Raise the level of Power Tech League (see table), created by Dealroom and the Adzuna search engine for the UK’s Digital Economy Council, identifies Cambridge as the UK’s leading regional technology city based on venture capital funding levels, venture capital rounds, advertised earnings and future earnings.

Gerard Grech, Founder and CEO of Tech Nation, believes the rise of technology centers is helping to spread opportunities across the UK.

He said: “With such a recording technique The investment year is becoming increasingly clear that the UK is very good at educating and cultivating startups and large-scale companies into successful global companies across the UK, as opposed to its continental European neighbors where it tends to be more in metropolitan cities. A true network of digital excellence is emerging across the country through entrepreneurship, creating new jobs and creating wealth. ”

Louise Alemanni, Associate Professor of Strategy and Entrepreneurship Management at the Institute of Entrepreneurship and Private Capital of the London Business School, notes that the emergence of regional centers and IT expertise gives the UK technology sector a great advantage.

She said: “Given that difficulties with recruitment are a major challenge for the development of technology startups, this geographical spread should turn into another structural advantage for UK technologies.”

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