UK tech sector continues to “exceed all predictions”

The UK tech sector placed ahead of major European economies Germany, France and Sweden in terms of global high-tech scaleup investment, new research has revealed.

The finding forms part of Tech Nation’s new annual Tech Nation Report, which provides an in-depth look into how the UK tech sector is performing both internally and compared to the rest of the world.

According to the report, the UK’s thriving technology industry performed “particularly well”, attracting five per cent of the world’s global high-tech scaleup investment. This places the UK fourth in the world as the most attractive place to invest in a young tech business.

Likewise, the research shows that investment in UK high-growth digital tech firms grew by 61 per cent between 2017 and 2018. This, the report says, was driven by “ambitious UK tech scaleups”, who delivered the majority of all tech investment in the UK in 2018 (£5 billion out of a total £6.3 billion).

Meanwhile, the UK’s sprawling financial sector continues to dominate the international market, with UK fintech (financial technology) ranking as number one in the world in terms of investment (£4.5 billion between 2015 and 2018).

The majority of this investment is concentrated in London, which as a thriving tech hub attracted some £9 billion in investment between 2015 and 2018. Cambridge, which followed up in second, attracted just £583 million, signifying the capital’s continued importance as a global tech centre.

Commenting on the report, Gerard Grech, CEO at Tech Nation, said: “The UK continues to exceed all predictions when it comes to tech growth. This report shows how the UK is a critical hub when it comes to global technology developments, with scale-up tech investment being the highest in Europe, and only surpassed by the US, China and India.

“This is a testament to the innovation, ambition and tenacity of tech entrepreneurs across the UK. These valuable findings will help inform how the UK as a nation can continue to foster competition and collaboration in an increasingly interconnected world.”

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