The UK’s tech industry is now valued at $1 trillion as the country’s tech sector is third in the world to ever achieve this landmark rating. According to Dealroom data analyzed for the UK Digital Economy Council, the UK’s thriving digital economy is now worth more than twice that of Germany and almost five times the size of France and Sweden.
This rapid rise in the value of UK technology follows sustained investment in the digital technology sector in recent years. The Covid-19 pandemic in particular has sparked a wave of technology adoption, from digital health apps to education platforms, video conferencing and e-commerce. The products and services that kept us connected at home have now become essential parts of our daily lives, helping to boost company valuations and take the UK tech ecosystem into a new league.
Digital Minister Chris Philp said: “Our technology industry has continued to grow, overtaking the rest of Europe and going down in history books as the third country to ever reach this milestone. We’re working hard to make the UK the best place in the world to start, grow and list technology companies – whether they’re early-stage startups or global innovators – and make sure they have the have the best talent, investments and regulations to be successful.”
The Minister for Digital released the figures ahead of the West Midlands Tech Review in Birmingham today, which celebrated the region’s tech achievements and opportunities.
The minister added: “Every corner of the country has contributed to the success of the sector, including the West Midlands, whose digital ecosystem is set to grow by at least £2.7 billion and create 52,000 additional jobs by 2025.”
The region’s technological excellence will be showcased as part of the 2022 Commonwealth Games in Birmingham through the £24m Business and Tourism Scheme. The program will help leverage the profile of this major sporting event to drive foreign investment and export opportunities between the West Midlands and Commonwealth markets.
Explosion in British technology
In 2018, the UK tech ecosystem was valued at US$446 billion and grew steadily until 2020, when it doubled in value to US$942 billion as investments in software and digital companies started at the start of the Covid-19 pandemic increased sharply in both private and public markets. This has helped propel the valuations of many companies from unicorns – companies valued at $1 billion or more – to the even rarer decacorn status (companies valued at over $10 billion).
The UK is now home to 13 Decacorns, 10 of which have gone public, and are the country’s highest-rated tech companies. That is twice Germany (6) and three times Sweden (4).
The 13 UK ten grains:
Markit – big data
WorldPay – Fintech
Checkout.com – Fintech
Revolut – Fintech
ARM – Semiconductor
FNZ – Fintech
Wise – Fintech
Rapyd – Fintech
Ocado Group – E-Commerce
Admiral Group – Fintech
Global Switch – data centers
eToro – Fintech
Deliveroo – Ecommerce
This group of leading companies is on track to expand over the next few years, with 14 UK companies valued between £5bn and £10bn virtual events hopin. The UK has more companies valued at $5-10bn than Germany (5), France (3) and Sweden combined.
While most UK decahorns and unicorns are concentrated in London, there are now 44 unicorns spread across the regions and 100 regional Futurecorns laying the groundwork for future success across the country.
Steady growth in 2022 despite challenges
In the first three months of 2022 alone, UK tech companies have raised over £6bn, with more than half (£3.3bn) raised by fintech companies such as FNZ, Checkout.com and GoCardless. This is an indicator of the strength of the sector, with private technology company valuations remaining strong despite declining valuations in public markets. Regional companies are also raising large sums of money, including Durham-based Atom Bank, the UK’s first challenger bank to raise £75m of late-stage funding, and Oxford-based ONI, a next-generation health-tech device startup turning 57 Millions of pounds raised in Series B funding in January.
This growth should only continue. A study by DCMS published last year found that the UK’s digital sector is on track to add £190bn to the UK economy and create almost 700,000 jobs over the next three years.
UK Tech supports Ukraine
Following the Russian invasion of Ukraine on February 24, British technology has joined forces to help the Ukrainian people organize events on platforms and provide visa support. Tech Nation, the growth platform for technology companies and executives, prioritizes Global Talent Visa applications of all nationalities as well as Ukrainian refugees. London-based Blue Lake VC, led by two Ukrainian founders, hosts events to help Ukrainian founders raise capital by facilitating intros for other UK-based investors to help rebuild the country’s tech sector. In addition, remoteukraine.org is a new digital job platform designed to help refugee Ukrainian tech professionals find work.
Gerard Grech, CEO of Tech Nationn said: “This is a turning point for British technology. The industry has weathered difficult global challenges and emerged stronger than ever. Ten years ago it was said that there weren’t enough start-ups in Great Britain. Five years ago it was said that there weren’t enough scale-ups. Innovative and experimental technology companies are being formed across the UK every day that will grow into the next generation of unicorns and decacorns and at Tech Nation we are committed to supporting and promoting these high potential companies across the country.”
Daniel Korski, DEC member and CEO of PUBLIC, said: “With an ecosystem value of $1 trillion and home to 13 deca grains, the UK has not only built an incredible tech industry, but a resilient one that has continued to thrive despite global challenges. By providing the right tools and resources, as well as supportive networks, we can ensure the industry continues to grow and remain a global technology leader.”
Julia Hawkins, General Partner at LocalGlobe, said: “This is a brilliant milestone for the UK technology industry. Despite the overwhelming challenges of recent years, UK technology has provided the means to keep us connected and moving forward, helping to transform industries across the country, particularly in the healthcare sector. It’s exciting to be part of this dynamic ecosystem and I look forward to seeing these startups and scale-ups grow over the years to come.”
Rana Yared, Partner at Balderton Capital, said: “Reaching $1 trillion is a major milestone for the UK. It’s often been criticized that you can’t build world-leading companies outside of the US, but we’re proving that you don’t have to be based in Silicon Valley to make a difference. Meanwhile, the UK’s fintech success continues, with fintech companies already raising over £3 billion in the first three months of the year.”
Yoram Wijngaarde, Founder and CEO of Dealroom, said: “The UK is only the third country in the world to reach that $1 trillion valuation milestone. The explosion in VC investment sparked by the pandemic amid overwhelming demand for digital healthcare, education and food delivery services has helped fuel this growth, but the foundations were laid well before 2020. As companies and investors grapple with the global challenges of 2022, from the Russian war in Ukraine to the ongoing supply chain crisis and rising cost of living, it will be interesting to see how tech ecosystems like the UK adapt and adapt.”
https://techround.co.uk/news/uk-tech-ecosystem-is-the-third-country-in-the-world-to-reaches-landmark-1-trillion-valuation/?utm_source=rss&utm_medium=rss&utm_campaign=uk-tech-ecosystem-is-the-third-country-in-the-world-to-reaches-landmark-1-trillion-valuation The UK tech ecosystem becomes the third country in the world to hit a landmark $1 trillion