The United Kingdom’s technology sector has experienced a remarkable year, according to recent figures. The data showcases unprecedented growth and success across various technological domains.
From significant funding inflows to landmark exits, the UK’s tech industry has reinforced its position as a leader in Europe. This article delves into the key highlights that have defined this exceptional year for UK tech.
Record-Breaking Investment Figures
New figures from analytics firm Dealroom and Tech Nation reveal that the UK’s tech sector attracted a staggering £6.3 billion in funding in 2018. This positions the UK ahead of Germany, France, and Israel in terms of investment.
Additionally, the UK achieved tech exits, including initial public offerings (IPOs) and acquisitions, worth an impressive $40 billion, leading all European nations.
Successful Exits Highlight Growth
Over the past five years, the UK has consistently emerged as the top source of successful company exits in Europe. Since 2013, sales and IPOs have amounted to $119 billion.
In 2018, notable exits included the flotation of online luxury retailer Farfetch and gene therapy company Orchard Therapeutics in New York. Also significant was Funding Circle’s flotation in London and Zoopla’s $3 billion sale to Silver Lake.
Economic Contributions of the Tech Sector
Tech Nation’s data underscores the UK tech sector’s strong economic contributions.
The sector exhibits 75% higher productivity compared to the broader UK economy.
Roles requiring digital skills command an average salary premium of £10,000 more than non-digital roles.
Expert Opinions on Tech Success
Tech Nation’s CEO, Gerard Grech, describes 2018 as “another great year for the UK digital tech sector.” He highlights the scaling of UK-born businesses into global success stories.
Digital secretary Jeremy Wright attributes this success to the UK’s unique combination of talent, location, language, business-friendly environment, capital access, and world-leading universities.
Eileen Burbidge, co-founder and partner at Passion Capital, remarks on the UK’s strength in attracting venture capital, particularly in the fintech sector, which genuinely leads the world.
Emergence of Regional Tech Hubs
The UK’s tech prowess is no longer confined to London. Six other cities, including Manchester, Leeds, Edinburgh, Oxford, and Cambridge, have produced at least two unicorns each—private companies valued at $1 billion or more.
These cities have become key players in the tech landscape, fostering innovation and attracting significant investment.
Leading the Charge in Unicorn Production
The UK leads Europe in the production of unicorns, outperforming all other countries.
Examples of successful unicorns include Monzo, a mobile-only digital bank, and Darktrace, a cybersecurity software firm.
This achievement reflects the robust growth and innovation within the UK’s tech ecosystem.
Future Prospects for UK’s Tech Sector
The data and expert insights suggest a promising future for the UK’s tech sector.
Continued investment and innovation are likely to sustain the momentum witnessed in 2018.
The UK’s tech sector has undeniably witnessed a ‘bumper year’ with record-breaking investments and significant economic contributions. This success is a testament to the country’s conducive environment for technological growth.
As regional tech hubs continue to emerge and the number of unicorns rises, the UK’s position as a European leader in tech investment remains robust and promising.
