The UK tech sector now has a combined market value of $1 trillion, the first time any country other than the US and China has passed this threshold.
The UK continues to hold the European crown for funding fast-growing technology businesses, raising a near-record level of investment of £24 billion this year.
The total was well ahead of France, which was second, having raised £11.8bn, and Germany, which was third, having raised £9.1bn.
Nearly half of the money raised in the UK last year, £10bn, went to financial technology (fintech) companies, while £1.7bn was raised for energy and almost £1bn for transport.
The UK also has more high-growth technology companies than European counterparts, having created 144 unicorns and 237 futurecorns – fast-growing companies predicted to be the most valuable businesses over the next few years – with a total of around 400 high-growth As part of the group start-ups valued at over £250 million that have launched in the UK since 2000.
Government figures for UK tech sector investment mirror research from venture capital firm Atomico, which reports that more than $400bn in market value has been wiped out from the wider European tech ecosystem this year.
Overall, the market value of European technology companies, including the UK, is set to fall by $400bn in 2022 from $3.1tr to $2.7tr.
And investment in technology businesses is slowing as fears of the economy floundering, rising inflation and industrial unrest make supporters more wary. It is becoming more difficult for companies to raise finance.
Ekaterina Almasak, general partner at early stage VC firm openocean, warned that the headwinds of the recession mean investors are scrutinizing start-up credentials more closely. Founders must be able to demonstrate that their company is on a clear path to growth and profitability.
“Inefficient growth of capital with a vision that doesn’t address real challenges is no longer enough to win the hearts of investors,” he added.