UK Tech Sector thriving amid current economic worries

The UK Economic outlook is bleak given the current climate with soaring energy and fuel prices set to start the next rescission. It may be surprising to hear that the UK Tech industry is thriving and doing better than it ever has.

The UK has one of the world’s largest technology ecosystems with thousands of tech start-ups, built around a strong entrepreneurial culture. UK technology fuels our most successful sectors including digital, healthcare, transport, creative, entertainment, financial services, cyber security, agriculture, and communications.

Investment in UK tech

The UK Tech industry is thriving with investment up 2.3 times this year, the highest growth since 2013 to 2014 when it grew from $2 billion (£1.5 billion) to $4.6 billion (£3.5) billion.

Cambridge is the leading tech city in the UK thanks to its combination of high levels VC funding, venture capital rounds, advertised tech salaries, number of unicorns (tech companies worth more than $1 billion) and future-corns, according to new analysis for the UK’s Digital Economy Council by Dealroom and the smarter job search engine Adzuna.

Cities Levelling Up Power Tech League for 2021:

• Cambridge
• Manchester
• Oxford
• Edinburgh
• Bristol
• Leeds
• Birmingham
• Newcastle
• Cardiff
• Belfast

The combined value of UK tech companies founded since 2000 now stands at £540 billion, after the biggest year-on-year increase since 2013/14.

Carolyn Dawson, Chief Executive of Founders Forum – At London Tech Week, said: “There are certainly already early signs, I think that’s inevitable – I don’t think that just because of our fast growth we’re not completely immune to the macroeconomic climate, but I do think the tech sector is one of significant resilience and typically, as time has shown again and again, that when there’s adversity, the tech sector normally comes through. “The tech companies will continue to thrive, continue to grow, through that.”

Overall, despite a hugely challenging year, technology and the UK tech sector has played a major role in helping the UK to adapt to the impacts of the pandemic while also helping to support economic growth and employment. Going forward ensuring we continue to get the right support for the growth of the UK tech sector will be vital not only for our economy, but also to build a more resilient, strong and green economy for the future generations to come.