Technology

The UK tech ecosystem hits a landmark $1 trillion valuation

The United Kingdom tech industry is now worth $1 trillion as the country’s tech sector is third in the world to ever achieve that landmark rating. Britain is thriving digital economy is now worth more than twice as much as Germany and nearly five times as much as France and Sweden, according to Dealroom data analyzed for the UK’s Digital Economy Council.

This rapid rise in the value of UK technology follows sustained investment in the digital technology sector in recent years. the Covid-19 pandemicin particular triggered a wave of technology acceptance digital health appsto educational 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 Phil said:Our technology industry has gone from strength to strength, overtaking the rest of Europe and going down in history 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 best talent, investments and regulations in place 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 sector’s success, including the West Midlands, whose digital ecosystem is set to grow by at least £2.7 billion by 2025 and create an additional 52,000 jobs.

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:

  1. Markit – big data
  2. WorldPay – Fintech
  3. Checkout.com – Fintech
  4. Revolut – Fintech
  5. ARM – Semiconductor
  6. FNZ – Fintech
  7. Wise – Fintech
  8. Rapyd – Fintech
  9. Ocado Group – E-Commerce
  10. Admiral Group – Fintech
  11. Global Switch – data centers
  12. eToro – Fintech
  13. 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 events hopin. The UK has more companies valued at $5-10bn than Germany (5), France (3) and Sweden combined.

While most British decahorns and unicorns are concentrated in London, there are now 44 unicorns distributed across the regions and 100 regional Futurecorns nationwide laying the foundation for future success.

Steady growth in 2022 despite challenges

In the first three months of 2022 alone, UK tech companies have raised over £6bn, more than half of it (£3.3bn). fintech Companies like 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.

British technology supports Ukraine

Following Russia’s February 24 invasion of Ukraine, British technology has rallied support Ukrainian people Organization of events on platforms and 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, Managing Director of Tech Nation 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 born 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, resources and supportive networks, we can ensure the industry continues to grow and remain at the forefront of technology worldwide.

Julia Hawkins, General Partner at LocalGlobe said:This is a brilliant milestone for the UK tech 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 next few years.

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 raising over £3bn already 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 this $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/tech/uk-tech-ecosystem-reaches-landmark-1-trillion-valuation/?utm_source=rss&utm_medium=rss&utm_campaign=uk-tech-ecosystem-reaches-landmark-1-trillion-valuation The UK tech ecosystem hits a landmark $1 trillion valuation

Fry Electronics Team

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