Britain’s tech sector will end the year as Europe’s leading ecosystem, maintaining its position as the main challenger to the US and China amid a global backdrop of tough economic conditions, according to new data from the Digital Economy Council Will keep
During 2022, fast-growing UK tech companies continue to raise more than combined record levels (£24bn) from France (£11.8bn) and Germany (£9.1bn). This brings the total amount raised over the past five years to around $100 billion (£97 billion).
The latest figures, compiled by Dealerroom for the Digital Economy Council, underline the success of the UK’s tech economy and its progress as a source of global innovation – a European Silicon Valley. These elements are guiding the expansion of its tech ecosystem, which now employs 3 million people across the country.
Sustained investment and growth have created a global technology superpower
Steady growth in UK tech saw the industry reach the $1 trillion valuation milestone earlier this year, making it only the third country to hit this valuation after the US and China. This means that the UK tech industry is ahead of its European peers and more than double that of Germany ($467.2 billion) and three times that of France ($307.5 billion) as well as leading overall funding, unicorn and startup numbers. Maintains edge while talking. ,
This has enabled the UK to produce around 400 high-growth startups (worth over $250 million in value) since 2000. This includes 144 unicorns – companies with valuations of $1 billion or more – and 237 futurecorns, fast-growing companies that are predicted to be the most valuable businesses over the next few years. New figures show how the ecosystem is expanding, up from 116 unicorns and 204 futurecorns at the same time last year.
Laying the Foundation for Value-Driven Growth
Part of the UK’s strength in creating such a broad and expanding tech ecosystem is its focus on combining innovation with standards and values. Earlier this year the UK unveiled a new approach to regulating AI – based on core principles such as security, transparency and fairness – taking a less centralized approach than the EU to the use of AI in their territories. How it is done. The chancellor also announced the government would bring in legal powers for the Digital Markets Unit to boost competition and level the playing field for challenger tech firms. All of this goes towards creating the right environment for research, technology and development to advance.
Introducing new generations to technology
Upskilling and reskilling has become a key part of the UK’s dominance in tech with nearly 3,000 edtech startups raising a collective £1.7bn in funding. Companies such as Academy, Code First Girls, Immersive Labs and Multiverse are focused on enabling people of all ages to acquire the skills they need to succeed in technical roles, from technical apprenticeships to coding, development and cyber security.
According to smart job search engine AdjunaUK companies are increasingly recruiting for entry-level tech roles, rising from 6,596 in November last year to more than 15,000 this year, as they look to bring in the next generation of tech talent and position them as future leaders. want to develop in
playing a leading role in influencing
The UK remains the leading country outside the US for fintech investment (almost £10 billion raised this year), but it is also becoming a major hub for Impact Tech – companies using technological solutions to reach the UN Sustainable Development Goals Getting ready. There are almost 1,200 impact tech companies in the UK, which have raised $3.8B in funding this year, up from last year’s record £3B.
Green energy receives huge amounts of investment, such as Nucleo, a startup developing technology to enable safe uranium recycling (£258 million). Scaleups tackling healthcare inequality, such as Cera which brings technological innovation to social care, raised £263m, while GrowUp Farms, a vertical farming company that uses technology to grow food more sustainably, raised £263m. raised £100 million. A steady flow of investment into impact tech means the sector now employs more than 53,500 people, up from 37,500 last year.
regional power makes a difference
Innovation has spread across the country, with eight cities now having two or more unicorn companies, including Bristol, Cambridge, Edinburgh, Leeds, London, Manchester, Nottingham and Oxford. These high-growth businesses are using decades of science and technology research and development to revolutionize areas such as finance (Interactive Investor – democratizing investing), sustainable travel (vertical aerospace – electric-powered aircraft), health research (Oxford Nanopore – portable DNA), are doing for. Sequencing) and Electronic Device Development (CSR – Semiconductors).
Collectively, these cities are home to 112 unicorn businesses, more than France (36) and Germany (63) combined – demonstrating a strong pipeline of global tech leaders being driven up and down the UK. In fact, Cambridge was recently named The world’s number one university for producing successful tech founders like Harvard and MIT – Over 500 alumni founders raised over $10 million in funding. Oxford came in third with 410. Bristol (173), Nottingham (100) and London (98) all made the top 20 due to their deep tech and science focus.
Finding the next sources of global innovation
It is also what is attracting international investors looking to expand their footprint in London and the UK to access a growing network of entrepreneurs in the new Silicon Valley. US investors including General Catalyst, Sequoia and Lightspeed have increased their teams in the UK following the opening in 2022. New offices opened here last year, and global firm New Enterprise Associates appointed its first UK-based partner in October. While European investor Earlybird VC opened a new office in London earlier this year. It follows another strong year of fundraising for UK-based funds, which have collectively raised £9.2 billion this year, up from £9 billion at the same time in 2021.
Digital Minister Paul Scully said: “UK technology has remained resilient in the face of global challenges and we ended the year as one of the world’s leading destinations for digital businesses. This is great news and technology regulation Our pro-innovation approach to IT reflects our continued support for start-ups and our ambition to boost people’s digital skills.