UK’s $1trn tech sector takes #1 spot in Europe in 2022
According to a report from Dealroom and the UK government, the UK has more high-growth companies than European peers includin 144 'unicorns' and over 85,000 startups and scale-ups.
The UK’s tech sector hit a combined market value of $1trn in 2022, according to data from Dealroom.
This suggests since 2019 the UK’s tech sector has doubled in value from c.$500bn three years ago, despite the period's well reported uncertainty through the covid pandemic, Brexit, the Russian invasion of Ukraine and mounting cost of living crisis.
Research, which ultimately came from UK’s Digital Economy Council (part of DCMS), suggests this places the UK’s tech ecosystem at the top of the European tables and third after the US and China.
Despite some rapid slowing of activity compared with 2021, during the past twelve months, UK tech companies have raised more cash (£24bn), than France (£11.8bn) and Germany (£9.8 bn) combined. In the past five years, this suggests nearly £100bn of investment.
Similarly, the combined value of Germany's ($467.2bn) and France's ($307.5bn) tech sectors fell short of the UK total by some way.
Over three million people are now working in the UK, the research found, following a number of years of increasing investment volumes from venture capital and other institutional investors.
The UK has more high-growth companies than European peers including created 144 'unicorns' and over 85,000 startups and scale-ups
About one in five of these unicorns is a fintech company, according to AltFi’s own research. This year the UK’s fintech sector raised about $10bn from investors, a third of the total.
"UK tech has remained resilient in the face of global challenges and we have ended the year as one of the world's leading destinations for digital businesses. This is good news and reflects our pro-innovation approach to tech regulation, continuing support for start-ups and ambition to boost people's digital skills," said UK Digital minister Paul Scully.